{"id":8053,"date":"2025-11-21T07:56:29","date_gmt":"2025-11-21T12:56:29","guid":{"rendered":"https:\/\/chministries.org\/?page_id=8053"},"modified":"2025-11-21T07:56:42","modified_gmt":"2025-11-21T12:56:42","slug":"chm-tax-information-and-resources","status":"publish","type":"page","link":"https:\/\/chministries.org\/chm-tax-information-and-resources\/","title":{"rendered":"CHM Tax Information and Resources"},"content":{"rendered":"\n
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Federal Tax Considerations<\/strong><\/h2>\n\n\n\n

The following summary is provided for informational purposes only and should not be construed as legal, tax, or financial advice.<\/em><\/p>\n\n\n\n


A Cost-Sharing Alternative to Insurance Under the ACA<\/strong><\/p>\n\n\n\n

Christian Healthcare Ministries (CHM) qualifies as a religious exemption under the U.S. Patient Protection and Affordable Care Act (the ACA, also known as \u201cObamacare\u201d). With over 40 years<\/a> of serving ministry members, CHM is a faith-based, voluntary healthcare sharing ministry (HCSM) that includes hundreds of thousands of CHM members across all fifty (50) states.<\/p>\n\n\n\n

As of tax year 2019, The U.S. Tax Cuts and Jobs Act removed the individual mandate penalty for people who don\u2019t have insurance or who can claim a qualifying exemption from health insurance coverage, including through a qualified alternative such as CHM membership, for the applicable tax year. Therefore, the Form 8965 should no longer be required as an attachment to your Federal Form 1040, according to IRS regulations<\/a>. However, members who are part of a group may still receive a Form 1095-C from their employers. See below regarding states’ “Proof of coverage<\/em> requirements<\/em>“.<\/p>\n\n\n\n

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Monthly Contributions and Federal Tax Exemption<\/p>\n\n\n\n

Cost-sharing ministry members generally cannot make new Health Savings Account contributions because a HCSM is not health insurance and does not meet the IRS definition of a high-deductible health plan; however, in some circumstances, CHM members may be able to utilize limited-purpose Flexible Spending Accounts or Health Reimbursement Accounts, but should consult with their employer and a tax or accounting professional to see what options are available, including under state law.<\/p>\n\n\n\n

Giving Beyond Standard Contributions<\/p>\n\n\n\n

Members who contribute to CHM Give<\/a> or donate above their monthly contribution may claim these donations as charitable tax deductions. Donations are credited to the year in which they\u2019re received by CHM. However, any contributions made in December but not arriving or posted with CHM until January are credited to the new calendar year. Members can use the Member Portal<\/a> to make donations, while non-members can donate here<\/a>.<\/p>\n<\/div>\n\n\n\n

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NOTE: In 2024, CHM members gave more than $2.5 million in charitable donations to CHM Give<\/a> which is used for a range of member medical bill sharing incurred by CHM members. Those who make these charitable donations (whether members or non-members) will receive a statement acknowledging their total prior annual contributions for tax-filing purposes.<\/em><\/p>\n\n\n\n

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State tax deductions<\/h3>\n\n\n\n

These states currently allow resident members to utilize a state tax deduction for the total annual contributions made to CHM. Members in these states will receive a letter listing their contributions for that deduction and including any additional charitable donations. A summary of each state\u2019s allowed deduction and related forms are listed here:<\/p>\n<\/div>\n\n\n\n

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Indiana<\/div>

As an Indiana resident, you may claim a deduction equal to the total amount of your CHM qualified membership fees for the taxable year. Applicable forms include: Schedule 2 and Schedule C<\/a><\/p>\n<\/div><\/div>

Missouri<\/div>

An individual resident may subtract the Missouri taxable income amount from their adjusted gross income, which was paid during the tax year for CHM membership (as defined for sharing ministries in \u00a7 376.1750<\/a>) and shall only be deductible to the extent that such amount is not deducted on the federal income tax return for that year. Applicable forms include can be found here<\/a>.<\/p>\n<\/div><\/div>

Montana<\/div>

Montana residents can contribute to a Medical Savings Account (MSA) and exclude from Montana taxable income up to $4,600 per tax year (amount is subject to change based on the applicable tax year). A list of eligible medical expenses is available in\u00a0IRS Publication 502, Medical and Dental Expenses<\/a>, and for the state, includes CHM monthly contribution payments. Learn more: Montana Medical Care Savings Account \u2013 MontGuide<\/a> and Montana Medical Care Savings Account (MSA) Log<\/a><\/p>\n<\/div><\/div>\n<\/section>\n<\/div>\n<\/div>\n\n\n\n

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Proof of coverage requirements<\/h3>\n\n\n\n

CHM members do not need to report CHM membership on their federal taxes for the applicable tax year in relation to healthcare coverage but may need to do so under certain states\u2019 requirements.<\/p>\n\n\n\n

The following states require all eligible residents to declare annual proof of health insurance coverage on state taxes, which may be called \u201cMinimum Essential or Creditable Coverage\u201d. Please refer to your state\u2019s applicable tax authority resources and consult your tax or accounting professional for additional information, help with preparing required documentation, and properly reporting CHM as a qualified exemption to health insurance coverage.<\/p>\n\n\n\n