Massachusetts requires its citizens to maintain what it considers a minimum level of health coverage or face a state individual mandate penalty. Massachusetts taxpayers must indicate if they maintained Minimum Creditable Coverage (MCC) as required by the Massachusetts Health Care Reform Law when completing their Massachusetts personal income tax returns using Schedule HC. Massachusetts taxpayers who do not maintain MCC for themselves and their dependents throughout the year and who do not qualify for an exception are subject to state income tax penalties.
This Alert summarizes how employer-provided medical coverage can satisfy the MCC requirements, employer reporting requirements, potential employer and taxpayer penalties related to the MCC requirements, and other related information.
