I was unemployed for 11 mnths in 2018 and took early IRA withdrawls. Can I count the amount paid for a healthcare sharing ministry as insurance premiums to limit penalty?

[MichaelMc]

You most likely do not have to worry about the penalty. An exemption exists for members of a bona fide health care sharing ministry.

What you need to know

• A health care sharing ministry is a tax-exempt organization whose members:
  • Share a common set of ethical or religious beliefs, AND
  • Share medical expenses in accordance with those beliefs, even after a member develops a medical condition
• The health care sharing ministry must have been in existence and sharing medical expenses continuously since December 31, 1999.

Do this first

• If you’re not sure if your ministry qualifies, contact them for more information.
• If you qualify, download Form 8965 (PDF) and instructions (PDF).

How to claim this exemption

• You claim this exemption when you file your federal income taxes. Most people file their taxes in April of the following year.
• On Form 8965, enter code "D" in Part III, column (c). Identify the months this exemption applies or select (d) for the full year.
• Include Form 8965 when you file your tax return.