What is the Shared Responsibility Payment (SRP)?
What is the Shared Responsibility Payment (SRP)?
The Affordable Care Act (ACA) requires most Americans to have health insurance. If you don’t have health insurance, you may have to pay a fee called the Shared Responsibility Payment (SRP). The SRP is a tax penalty that is paid as part of your federal income taxes.
The amount of the SRP depends on your income and the number of months you were uninsured. For 2023, the fee is $750 per uninsured adult and $375 per uninsured child (up to a maximum of $2,250 per family).
There are some exemptions to the SRP. You don’t have to pay the SRP if you:
Were uninsured for less than three months
Had health insurance through an employer or government program
Were low-income
Had a hardship that prevented you from getting health insurance
If you don’t qualify for an exemption, you can still reduce your SRP by claiming a tax credit. The tax credit is available to people who have low incomes and who have to pay the SRP.
To claim the tax credit, you must file Form 8965, Health Insurance Coverage Exemption. You can get Form 8965 from the IRS website or by calling the IRS at 1-800-829-1040.
If you don’t file Form 8965, you will have to pay the full amount of the SRP.
The SRP is a tax penalty that is paid as part of your federal income taxes. The amount of the SRP depends on your income and the number of months you were uninsured. There are some exemptions to the SRP. You can also reduce your SRP by claiming a tax credit.
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If you have any questions about the SRP, you can contact the IRS at 1-800-829-1040. It’s also always best to consult with a qualified professional to ensure that you are making the right decision for your circumstances.
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