This article is for information only and is not tax advice.
This article explains why Sprintax shows that you owe money to Massachusetts (MA) for a health care penalty, and what you can do about it. It's for anyone who files a Massachusetts state tax return.
Why do I owe a health care penalty to Massachusetts?
Massachusetts requires most adults who are 18 or older and have access to affordable health insurance to have health coverage that meets state standards. This requirement applies to both full-year residents and part-year residents. Insurers usually report your coverage on Form MA 1099-HC. If you don't provide the form, Massachusetts applies a health care penalty.
Sprintax classifies you as a part-year resident or a full-year resident for Massachusetts state tax purposes. The classification is based on the information in your Sprintax account and on the Massachusetts residency rules. If you're a resident for any part of the year, Massachusetts requires Form MA 1099-HC, because the state has its own health insurance mandate.
What is Form MA 1099-HC?
Form MA 1099-HC is the official proof of health insurance coverage. Your health insurance carrier or administrator issues the form, usually by 31 January of the following year. The form shows whether your coverage met the Massachusetts minimum creditable coverage (MCC) requirements.
What if I didn't receive Form MA 1099-HC?
Contact your insurer, your employer's human resources department, or your benefits administrator and ask for the form.
When does the penalty not apply?
Massachusetts doesn't apply the penalty in the following cases:
You had a gap in coverage of 3 consecutive months or fewer.
You became a Massachusetts resident during the tax year, and the months before the mandate starts don't count. The mandate starts on the first day of the third month after the month that you became a resident.
Your income is 150% of the federal poverty level (FPL) or less.
You can't afford coverage, or another hardship exemption applies. You can appeal through the Massachusetts Health Connector.
You had Medicare, MassHealth, or VA or TRICARE coverage.
How much is the penalty?
The penalty is half of the lowest-priced available health insurance premium. For tax year 2026, the monthly penalty depends on your income as a percentage of the FPL for your family size.
The penalty is the monthly amount for each uninsured month, after a 3-month allowance.
For more information please visit the MA State tax office website.