Link to the Department of Treasury   Global Navigation Services A to Z Departments/ Agencies FAQs
Link to the New Jersey Division of Taxation
  NJ Health Insurance Mandate Coverage Exemptions  
  Exemption Menu  
Taxation home | Electronic services | Contact us

Listed below are the types of NJ Heath Insurance Coverage Exemptions. Select the exemption type that applies by marking the appropriate checkbox. Then scroll to the bottom and select the Continue button to advance to the next section. You will be asked to provide information for the selected exemption.

At the end of the process, you will see a confirmation page letting you know your information has been successfully received and your exemption number. You are encouraged to print this page for your records. You will be contacted by the Division of Taxation if there is a problem with your submission or more information is needed.

If you are requested to submit supporting documentation for the exemption submitted, click here.


Income Related
Select
To qualify for this exemption:
  • Coverage is considered unaffordable if the premiums for the lowest cost Bronze-Level plan - including the benefits of any tax credits and/or employer subsidies - available to you are more than 8.05% of your household income for the tax year. To estimate your household income, see income worksheet . To calculate your individual health coverage rates see here.
  • 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 qualify for this exemption, it may apply to everybody (joint filer, dependents, etc.) on your tax return.
Select
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 or 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 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 coverage and to whom it's offered.
Select
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:
Family Size Household Income
1 $20,120.40
2 $27,213.60
3 $34,306.80
4 $41,400.00
5 $48,493.20
6 $55,586.40
7 $62,679.60
8 $69,772.80
For each additional person in families of more than eight, add $7093 to $69,772.80 to determine the Federal Poverty Level.

Health Coverage Related
Select
  • 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.
  • If 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 2022, December 2022, and January 2023. You're not eligible for the 2023 short gap exemption for January because you didn't have coverage for three consecutive months - from November 2022 through January 2023.
If you qualify, you can claim this exemption for the dependent(s) you claim on your tax return.

Group Membership
Select
You must be a member of a religious sect or division that:
  • Is recognized by the Social Security Administration as conscientiously opposed to accepting any insurance benefits, including Social Security and Medicare, and has been in existence since December 31, 1950; 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 this exemption is granted, you will not have to reapply for an exemption unless you turn 21 or leave your religious sect.
Select
Tax-exempt organization in existence and sharing medical expenses continuously since December 31, 1999, 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.
Select
Any Indian or Alaska Native tribe, Alaska Native Claims Settlement Act (ANCSA) Corporation (regional or village), band, nation, pueblo, village, rancheria, or community that the Department of the Interior acknowledges to exist as an Indian tribe.
Select
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); or
  • 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 anyone else on your tax return that qualifies.

Incarcerated
Select

You may claim this exemption for any month you are incarcerated for at least 1 day. For these purposes, incarcerated means serving a term in prison or jail.

Incarceration does not include being on probation, parole, home confinement, or being held but not convicted of a crime.

You can claim this exemption for any month you are incarcerated for at least 1 day.

New Jersey Resident Living Abroad and Resident Aliens
Select
You are a U.S. Citizen who:
  • 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 for a full tax year. File for this exemption only if you are required to file a New Jersey resident tax return.
You are a resident alien who:
  • 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) dual-state alien in the first year of U.S. residence or (2) a non-resident 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.

Hardships
Select
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 your child whose medical needs are covered by another party. You cannot claim this exemption for yourself.
Select
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.
Select
To qualify for this exemption:
  • The eviction or foreclosure must have occurred in the last three years.
  • You must be able to provide an eviction or foreclosure notice upon request.
This exemption could apply to your entire tax household.
Select
Your utility shut-off must have occurred within the last three years.
Utility shut-off must be from an electric, gas, or water company. You will need to retain for your records a copy of a notice from the utility that says service was or will be shut off.
Select
To qualify for this exemption:
  • You must have experienced domestic violence.
A domestic violence exemption could apply to your entire household. No specific documantation is required, but the State may require corroboration on a case by case basis.
Select
The death of a close family member must have occurred in the last three years and you must be able to provide one of the following upon request:
  • Death Certificate
  • Notice of death from a newspaper
  • Funeral service program
  • Funeral expenses document
  • Coroner's report
  • Military notification of death
  • Other official notice of death
A death of a close family member hardship may apply to your entire household.
"Note: You may only claim the exemption one time during the three years."
Select
You must have experienced the disaster within the last three years and be able to provide a copy of one of the following upon request:
  • Police Report
  • Fire Record
  • Insurance Claim
  • Other document about the event from a government agency, private entity, or news source.
Select
You must have filed for bankruptcy in the last three years and be able to provide copies of official bankruptcy filing documents from a court of law upon request.
A bankruptcy hardship may apply to your entire household
Select
Must be able to provide upon request, copies of medical expenses you were unable to pay.
Select
To qualify for this exemption:
  • You must have experienced an increase in expenses for caring for a family member in the last three years.
  • You must be able to provide copies of bills or receipts for service (medical, transportation, home care services) upon request.
This hardship may apply to your entire household.
Select
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
Select
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.