Official Site of The State of New Jersey

Coverage is considered unaffordable if the premiums for the lowest cost Bronze-Level plan available to you through the Marketplace in the tax year are more than 8.05% of your household income. To estimate your household income, see income worksheet.

The total cost to you must be more than 8.05%, accounting for any tax credit you would qualify for if you enrolled in that plan.

If you can claim this exemption, it may apply to the dependent(s) you claim on your tax return who didn’t have coverage in the year.

When considering whether to file this exemption, know that job-based health insurance is considered unaffordable in different ways, depending on how the coverage is offered:

• For the employee: The annual premium for the lowest cost self-only plan (a plan that covers only you and not other members of your family) is more than 8.05% of household income
• For the employee’s family: The annual premium for the lowest cost family plan is more than 8.05% of household income
• If you can claim this exemption, it may apply to everybody on your tax return who doesn’t have coverage in the tax year. This will depend on the cost of the coverage and to whom it’s offered.

You qualify for this exemption if your household income is at or below 138 percent of the federal poverty level. You will be requested to complete a Household Income worksheet and provide a Family Member Count. If your household income and family size are within these limits, you may file for this exemption:

For each additional person in families of more than eight, add $7,525 to determine the Federal Poverty Level.

• In any tax year, you may apply for a Short-Gap exemption if you had a lapse in coverage of less than three months.
• New Jersey considers you covered during a month if you had coverage for even one day during that month. So if you are without insurance for two consecutive months, you must have insurance by the last day of the third month to qualify for a Short-Gap exemption.
• If you have a gap that is three months or longer, you cannot claim this exemption for any month. The Shared Responsibility Payment will be due for every month you were without coverage.
• If you had two or more such gaps in coverage during a year, you can claim this exemption only for the months of the first coverage gap. Example: You didn't have coverage any day in May or any day in November or December. You can claim the exemption only for May.
• f your coverage gap crosses calendar years, the months without coverage of the second tax year aren't counted for the exemption for the first tax year. But the uncovered months from the first year are counted for the exemption for the second tax year. Example: You don't have qualifying coverage in November 2020, December 2020, and January 2021. You're not eligible for the 2021 short gap exemption for January because you didn't have coverage for three consecutive months - from November 2020 through January 2021.

If you qualify, you can claim this exemption for the dependent(s) you claim on your tax return.

To claim this exemption, you must be a member of a religious sect or division that:

• Has been in existence since December 31, 1950 and is recognized by the Social Security Administration as conscientiously opposed to accepting any insurance benefits (including Social Security and Medicare). Or
• Relies solely on a religious method of healing, and for whom the acceptance of medical health services would be inconsistent with the religious beliefs of the individual.

If you get this exemption, you won’t have to reapply for an exemption unless you turn 21 or leave your religious sect.

A health care sharing ministry is a tax-exempt organization whose members:

• Share a common set of ethical or religious beliefs, and
• Share medical expenses in accordance with those beliefs, even after a member develops a medical condition.

The health care sharing ministry must have been in existence and sharing medical expenses continuously since December 31, 1999.

You qualify for this exemption if you're:

• A member of a federally recognized Indian tribe;
• An Alaska Native Claims Settlement Act (ANCSA) Corporation Shareholder (regional or village);
• Otherwise eligible for services from an Indian health care provider or through the Indian Health Service.

You qualify for the exemption for any month you had any of these statuses for at least 1 day, or for the full year if you had the status all year.

You can claim this exemption for yourself or any dependent(s) you claim on your tax return who qualify.

You’re a U.S. citizen who either:

• Spent at least 330 full days outside of the U.S. during a 12-month period, or
• Was a bona fide resident of a foreign country (or countries) for a full tax year.

You’re a resident alien who both:

• Was a citizen or national of a foreign country with which the U.S. has an income tax treaty with a nondiscrimination clause including (1) a dual-state alien in the first year of U.S. residence or (2) a nonresident alien or dual-status who elects to file a joint return with a U.S. spouse, and
• Was a bona fide resident of a foreign country for the next tax year. File for this exemption only if you are required to file a New Jersey resident tax return.

You need to retain for your records copies of these documents:

• A court order that covers the months you want to claim this exemption, and
• A denial notice that shows the child was denied coverage through either Medicaid or the Children’s Health Insurance Program (CHIP) in the tax year.

This exemption applies only to the child, not you. You and other members of your household who don’t have coverage but don’t qualify for this exemption must qualify for a different exemption or pay the Shared Responsibility Payment.

This exemption applies to everyone listed on your tax return. No specific documentation is required, but the State may require corroboration on a case-by-case basis.

An eviction or foreclosure hardship could apply to you and the dependent(s) you claim on your tax return.

To qualify for this exemption:
You must have experienced domestic violence.
A domestic violence exemption could apply to your entire household. No specific documentation is required, but the State may require corroboration on a case-by-case basis.

To qualify for this exemption:

• The death of the close family member must have occurred in the last 3 years. Note: You may only claim the exemption one time during the three years.
• You must retain for your records one of these forms of documentation:
• Death certificate
• Death notice from a newspaper
• Funeral service program
• Document showing funeral expenses
• Coroner’s report
• Military notification of death
• Other official notice of death

A death of a close family member hardship could apply to you and the dependent(s) you claim on your tax return.

To qualify for this exemption:

• You must have experienced the disaster within the last 3 years.
• You need to retain for your records copies of a police record, fire record, insurance claim, or other document from a government agency, private entity, or news source about the event.

An exemption due to a disaster could apply to you and the dependent(s) you claim on your tax return.

To qualify for this exemption:

• You must have filed for bankruptcy in the last 3 years.
• You must retain for your records copies of official bankruptcy filing documents from a court of law.

A bankruptcy hardship could apply to you and the dependent(s) you claim on your tax return.

To qualify for this exemption:

• You must have experienced an increase in expenses for caring for a family member in the last 3 years.
• You need to retain for your records copies of bills or receipts for services related to care. You can send copies of medical bills, statements for home care services, or transportation receipts.

This hardship could apply to you and the dependent(s) you claim on your tax return.

To qualify for this exemption:

• You need to retain for your records a copy of the appeal decision showing that in the months you didn’t have coverage you were eligible for at least one of these:
• Enrollment in a qualified health plan (QHP) through the Marketplace
• Advance payments of the premium tax credit to lower costs on your monthly premiums
• Cost-sharing reductions that lower your out-of-pocket costs

To qualify for this exemption:

• You must have experienced a hardship not currently listed.
• You must provide an explanation of the hardship on your exemption application.