In New Jersey, do senior citizens (65 and older) on Medicare have to pay the SRP tax penalty?
No, seniors 65 and over are exempt from the state’s Shared Responsibility Payment (SRP) penalty.
Why You’re Exempt
Because Medicare counts as "minimum essential coverage" under New Jersey’s health insurance mandate, seniors 65 and older are exempt.
New Jersey’s individual mandate
Since 2019, NJ requires residents to have qualifying health coverage or pay an SRP on their state tax return.
What qualifies as coverage
“Minimum essential coverage” includes Medicare Part A and most Medicare Advantage plans irs.gov.
Result for Medicare recipients
You're covered under Medicare, so you meet the requirement and won’t incur an SRP on your NJ-1040—even as a senior adult.