CHM and your taxes: What you need to know

Editor’s note: This information was published in the April 2020 issue of Heartfelt Magazine, CHM’s monthly magazine that provides CHM membership-related tips and tricks, medical advice from doctors, testimonies from CHM members, and more. Please refer to the CHM Guidelines and applicable web pages for the most up-to-date information regarding CHM membership, sharing eligibility, and ministry news.

Important update from the IRS: Did you know that this year's tax deadlines are extended to July 15 due to the impact of the coronavirus? Learn more on IRS coronavirus tax relief page.

As a CHM member here are important things to know as you prepare your 2019 taxes:

  • When filing your taxes, you no longer have to report Form 8965 as an attachment to your Federal Form 1040. Last year the U.S. Tax Cuts and Jobs Act (TCJA) removed the individual penalty for taxpayers who don’t have health insurance or who can claim a qualifying exemption, such as your CHM membership. This applies to all CHM members: individuals, Medicare participants, and group members.*
  • Your CHM monthly gift and Brother’s Keeper membership gift amounts are not tax deductible (except in the state of Missouri). Though CHM is a 501(c)3 nonprofit organization, because you receive the service of healthcare sharing, membership amounts cannot be claimed as donations.
  • Any donations you made to the Prayer Page or as extra giving to CHM are tax deductible and considered donations. Members who contributed to extra giving in 2019 were mailed a tax statement for their donations. If you didn’t participate in extra giving, you didn’t receive a tax statement.
  • We are examples of our Christian faith when we live obediently. Titus 3:1-2 (NLT) states, “Remind believers to submit to the government and its officers. They should be obedient, always ready to do what is good. They must not slander anyone and must avoid quarreling. Instead, they should be gentle and show true humility to everyone.”

Editor’s note: Members who are part of a group may still receive Form 1095 from their employers as part of the law’s requirement; however, these forms can simply be filed away with your tax records.

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