DC Individual Mandate and Reporting Requirements

Blog post

D.C. recently joined California, Massachusetts, New Jersey, Rhode Island and Vermont
by enacting state-level legislation requiring all residents of the District to have minimal
essential health care coverage or a coverage exemption. Individuals residing in Washington, D.C. without coverage or an exemption will owe a tax penalty on their D.C. tax returns for tax year(s) ending on or after December 31, 2019.

Those that fail to comply with the mandate may be subject to a penalty equal to 2.5% of
their household income or a per person charge ($695 per adult and $375.50 per child),
whichever is higher. Note: The mandate does not apply to individuals who work in D.C., but
do not live in the District.

The official act, called the Individual Taxpayer Health Insurance Responsibility Requirement
Amendment Act of 2018 requires employers who sponsor an employer-based health plan
with at least 50 full-time employees (including a minimum of one D.C. resident) to also
submit their ACA reporting – Forms 1094/5-B and 1094/5-C – to the D.C. Office of Tax
and Revenue (OTR).

The information returns must be filed electronically through, using layouts
and file formats prescribed by OTR. Employers may use third-party service providers to file
information returns on their behalf. Written statements must be furnished to D.C. residents
whose names appear on the returns submitted to OTR. Employers providing Forms 1095-
B or 1095-C to employees are deemed to have met the D.C. requirement to furnish forms.

The first submission is due to the OTR by employers on June 30, 2020. For tax years
after 2019, the deadline to furnish statements to the District will be 30 days after the
IRS deadline for ACA reporting, including any extensions granted by the IRS. The recently
released official D.C. guidance can be found here.

Important Point: For employer purposes, an individual is deemed a D.C. resident if their
employer withholds wages and pays taxes to D.C. on their behalf or has a mailing address in the District for any period during the applicable calendar year.