New Jersey Health Care Coverage Exemptions

Certain taxpayers may be exempt from the health-care coverage requirement for some or all of a tax year. Exemptions are available for reasons such as earning income below a certain level, experiencing a short gap in coverage, having no affordable coverage options, or enduring a hardship. (See Types of Coverage Exemptions below). Taxpayers must claim the exemption using the NJ Division’s NJ Insurance Mandate Coverage Exemption Application.  If a taxpayer qualifies for an exemption, it can be reported when the New Jersey Income Tax return (Resident Form NJ-1040) is filed, using Schedule NJ-HCC.

Individuals who are not required to file a New Jersey Income Tax return are automatically exempt and do not need to file just to report coverage or claim the exemption.

To access Schedule NJ-HCC healthcare coverage exemptions in Tax Processors Plus Desktop, from the main menu of the NJ tax return, select:

• Health Care Coverage (NJ HCC) (Repeat the steps below for each individual included on the tax return that qualified for an exemption).
• Part 2 - Individual Information about health coverage - Select New and enter the information as prompted for the individual with the exemption.
• Months Had Qualified Health Coverage or Exemption - Check the box for every month the individual had minimum essential health coverage or qualified for an exemption (part-year residents include only months as a New Jersey resident).
• Exemption Code - If the individual qualified for an exemption, enter the exemption number. (See instructions for line 53c, NJ-1040.)

Additional Information:

New Jersey Shared Responsibility Requirement - Claiming Exemptions