Editor’s note: This information was published in the February 2019 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.
Editor’s note: This article was written before Jan. 1, 2019. For the most up-to-date information, please visit our website’s tax page.
There’s no need to be anxious when it comes to CHM and your taxes. Here is some information to guide you as you prepare your income tax filing.
IRS Form 8965
Most members* must include IRS Form 8965 “Health Coverage Exemptions” when filing their 2018 taxes. Please tell your tax professional about your membership and this form to attach to your IRS Form 1040, 1040A, or 1040EZ.
As a CHM member you have no reason or requirement to go to the health insurance marketplace or insurance exchanges. File Form 8965 with your taxes and only fill out Part 3 of the form. You can find a sample of Form 8965 with Part 3 completed on our website’s tax page. (Your CHM join date appears on your membership card.)
Electronic (online) filing
If you use electronic software to file your taxes the software should automatically ask you the questions that appear on Form 8965. Follow the prompts to claim exemptions for family members who participated in CHM for all or part of the 2018 tax year. If your tax software asks for an ECN number, skip that page or window to go to the next step.
*Members who were part of a group in 2018
Please contact your group administrator for tax help. Group administrators with questions should speak to an attorney knowledgeable about both taxes and the Affordable Care Act.
*Members who had Medicare in 2018
Members who had Medicare for all of 2018 should not file Form 8965. Since Medicare is your primary source of health cost provision, please indicate that you have health insurance when filing your taxes by mail or online. For further questions, please consult your tax professional.
The U.S. Tax Cuts and Jobs Act (TCJA)
Though many provisions of the federal tax reform law went into effect in 2018, please know that the Affordable Care Act’s individual mandate remains in effect. The tax penalty was not reduced to zero until Jan. 1, 2019 and thus will not affect your 2018 income tax filing.
Except in Missouri, monthly financial gifts to CHM are not tax-deductible. Only extra giving (including Prayer Page donations) is considered tax-deductible. CHM mails a tax statement to all Missouri members, but only to members from other states who in 2018 contributed extra giving. If you didn’t participate in extra giving in 2018, you will not receive a tax statement.