Home > Publications > FAQ: Immigrants, Taxes, and Affordable Care Act

The Patient Protection and Affordable Care Act (ACA) established health insurance marketplaces to make it easier for people to buy health insurance, and it provides for income-based subsidies to make insurance more affordable for the people who buy it. The ACA requires that all United States citizens and lawfully present noncitizens either be covered by health insurance or pay a financial penalty.1 There are some exceptions to this requirement,2 which is often called the “individual mandate.” For example, people who are not lawfully present, have an income below the tax-filing threshold, or cannot afford to buy health insurance, even with subsidies, are not required to have health insurance.
Several aspects of ACA implementation relate to the filing of taxes. Federal tax