2016 Federal Tax Filing Requirement Thresholds

 

Filing Status Age Must File a Return If Gross Income Exceeds*
Single Under 65 $10,350
65 or older $11,900
Head of Household Under 65 $13,350
65 or older $14,900
Married Filing Jointly  Under 65 (both spouses) $20,700
65 or older (one spouse) $21,950
65 or older (both spouses) $23,200
Married Filing Separately  Any age $4,050
Qualifying Widow(er) with Dependent Children Under 65 $16,650
65 or older $17,900

*NOTE: The filing thresholds are different for children and other dependents.

Examples of How the Shared Responsibility Payment is Calculated for Calendar Year 2016

Example 1: Single Individual Under Age 65 with $52,000 of Household Income

Michael is a single and has no dependents. He did not have minimum essential healthcare coverage for any month during year 2016 and does not qualify for an exemption. For 2016, Michael's household income is $52,000 and his filing threshold is $10,350 (from the table above).

  • To determine his shared responsibility payment using the income formula, subtract $10,350 (filing threshold) from $52,000 (2016 household income). The result is $41,650. Two and a half percent of $41,650 equals $1,041.25.
  • Michael’s flat dollar amount is $695.

Because $1,041.25 is greater than $695 (and is less than $2,676 which is the national average premium for bronze level coverage for year 2016 for a single person), Michael’s shared responsibility payment for 2016 is $1,041.25, or $86.77 for each full month he is uninsured (1/12 of $1,041.25 equals $86.77).

Michael will make his shared responsibility payment for the months he was uninsured when he files his 2016 federal income tax return.

Example 2: Single Parent Under Age 65 Who Is Head of Household with 1 Child and $21,450 of Household Income

Lisa is a single parent and has one child under age 18 who lived with her the entire year. Both the parent and child had no minimum essential healthcare coverage for any month during year 2016 and neither of them qualify for an exemption. For 2016, Lisa's household income is $21,450 and her filing threshold is $13,350 (from the table above).

  • To determine her shared responsibility payment using the income formula, subtract $13,350 (filing threshold) from $21,450 (2016 household income). The result is $8,100. Two and a half percent of $8,100 equals $202.50.
  • Lisa’s flat dollar amount is $1042.50 ($695 per adult and $347.50 per child).

Because $1,042.50 is greater than $202.50 (and is less than $5,352 which is the national average premium for bronze level coverage for year 2016 for a family of two), Lisa’s shared responsibility payment for 2016 is $1,042.50, or $86.88 per month for each month they are both uninsured (1/12 of $1,042.50 equals $86.88).

Lisa will make her shared responsibility payment for the months her and her child were uninsured when she files her 2016 federal income tax return.

 

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