New Jersey recently enacted the New Jersey Health Insurance Market Preservation Act, effective January 1, 2019, which will require its residents to maintain health insurance throughout 2019 and beyond, or be subject to a penalty (annual shared responsibility payment) on their New Jersey Income Tax return (Form NJ-1040). Even though the Federal income tax penalty has been eliminated, New Jersey residents may still be subject to a shared responsibility payment imposed by the state.
Generally, failure to have health insurance coverage or qualify for an exemption will result in a shared responsibility payment when you file your 2019 New Jersey Income Tax return. If you are not required to file a 2019 New Jersey Income Tax return, you are exempt from this mandate. There are various exceptions where other exemptions are granted if you meet certain conditions, for example if your income is below a certain level or if you are experiencing a hardship.
The amount of the shared responsibility payment is based on your income and family size, but is capped based on certain criteria. Most basic health coverages satisfies this new requirement, but certain employer plans that provide only very limited benefits do not.
Our team of experienced professionals and advisors at Gramkow, Carnevale, Seifert, & Co., LLC can be a valuable asset by helping you understand how to comply with the newly enacted New Jersey Health Insurance Market Preservation Act.
For more details on what qualifies for the exemption from the shared responsibility payment, how to claim the exemption, how the penalty is calculated, and what type of health coverage plans qualify, please contact us on this or any other issue or question you have.
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Robert (Rob) Griggs, CPA is a Director at Gramkow, Carnevale, Seifert & Co., LLC. Rob provides accounting, tax planning and consulting and business advisory services with an emphasis in family-owned and closely-held businesses. Rob services clients in various industries including retail, manufacturing, restaurant and real estate. Rob also has many years of experience in the construction industry and is involved with servicing the firm’s construction clientele. Rob’s professional experience has been exclusively in public accounting with over 20 years of experience.
Rob is a Certified Public Accountant licensed in New Jersey and New York. Rob earned his Bachelor of Business Administration – Accounting degree at Pace University in 1984. Rob is an active member of CPA Associates International, Construction Financial Management Association, New York State Society of Certified Public Accountants and the American Institute of Certified Public Accountants. Rob has served on various CPAAI niche services committees and is a member of the firm’s Assurance Committee.
Should you have any questions or wish to speak to a team member, please don’t hesitate to call us at 201-599-0008.
