As of January 1, 2014, anyone who doesn't have health insurance coverage will be required to pay a federal tax unless they qualify for an exemption or for 2013-2014 plan year transition relief. This is sometimes referred to as the "individual shared responsibility payment".
The federal tax filer who can claim a dependent for income tax purposes is responsible for paying the tax if the dependent does not have coverage or can qualify for an exemption. See the Internal Revenue Service (IRS) publication "Facts about Health Coverage Exemptions"
for more information about specific exemptions and how to apply for them. We encourage you to consult a personal tax advisor to discuss how these matters may affect your specific situation.
Transition relief was provided to certain individuals who were eligible to enroll in an eligible employer-sponsored health plan with a plan year beginning in 2013 and ending in 2014. In connection with the GBP's plan year that began September 1, 2013 and ended August 31, 2014, IRS guidance provides that selected employees or eligible dependents may have transition relief from liability for the federal tax until the 2013-2014 plan year ends. For more information, please refer to IRS Notice 2013-42