As a DACA (Deferred Action for Childhood Arrivals) individual, you
are indeed exempt from the (2016) requirement to have health insurance,
or pay a tax penalty for not having it. The Affordable Care Act (a.k.a.
Obamacare) contains provisions that exempt DACA persons from the tax
penalty. You can read more about that at the following website:
http://obamacarefacts.com/questions/will-penalties-include-daca-recipients/
However, if you are in the DACA program, you should otherwise consider yourself a resident alien for tax
purposes. As such, you are subject to generally the same US income tax reporting
rules and laws as are full US citizens. In fact, for income tax
purposes, you will treat yourself no differently, and you should file
the same Form 1040 (or 1040A or 1040EZ) that everyone else does,
provided they are US citizens or resident aliens.
Therefore, in
order to take the DACA health care penalty exemption (Code "C" on Form
8965), on your tax return, and get this to generate properly in the
TurboTax program, you should visit the Heath Insurance section
tab of the main federal program, and proceed to answer the interview
questions in a manner identical to (or very similar to, depending on
your version of the TurboTax software) the screen-capture images below.
Simply click the pictures to open.
Completing the health
care interview in this manner will cause Code C to appear on Form 8965
(the Obamacare tax penalty exemption form). These steps have been
checked and verified in the program.
Thank you for asking this question.
