Thanks. I see what you are saying but I believe you are confusing the instructions for filing exemption with the instructions for the part II exemption.
You have explained the instructions for whether or not i am exempt from having to file my taxes. You are correct that I do have to file my taxes since it true that either my AGI or my gross income is above the threshold. If i said that i was exempt from filing earlier I was incorrect.
However, whether or not i am exempt from this penalty through part II of the document does not wholly overlap with whether i must file my taxes. As the first line of your quote states the part II exemption is actually the inverse of that: If either my AGI or my gross income is below the threshold. The document goes one to explain in further detail on the specific instruction on page 5.
since i am below the gross income threshold but above the agi threshold, it is the case that i must file my taxes but i am exempt from this penalty by part 2 of this document.
below is page 5 of the instructions for form 3853. In bold is the situation which applies to me.
"If you are not required to file a tax return because your applicable
household income or gross income is less than your filing threshold,
and you do not wish to file a tax return, your applicable household is
exempt from the Individual Shared Responsibility Penalty and you do
not need to file a tax return or do anything else to claim the coverage
exemption. If your applicable household income or gross income is less
than your filing threshold but you file a tax return for any reason, see the
instructions for line 1 next.
Line 1 – Applicable Household Income or Gross
Income Below Filing Threshold
To check the box on line 1 based on your applicable household income
or gross income, you must first determine your applicable household
income (see Applicable household income, under Definitions) and your
gross income (see Do I Have to File? on page 18). Then compare your
applicable household income to the California adjusted gross income
filing threshold or your gross income to the California gross income
filing threshold that applies to you based on your filing status. If either
your applicable household income or gross income is less than your
filing threshold, check the box. If you check the box in Part II, line 1, you
do not have to complete Part III"
from what you've explained to me, it sounds like turbotax is overlooking this case. Is there something I or you can do remove this penalty from my tax return?
