Regarding the calculation of the health ins. coverage penalty, when MFS, should Turbo Tax deduct the threshold amount ($12,000) before calculating the penalty?

[psumom122]

Filing MFS; no health insurance all year.  Turbo Tax is calculating the penalty on the household income without reducing it by the threshold amount.

[MichaelL1 · Accepted solution]

The penalty is based on the household income (which does not get reduced), and is not reduced by standard deduction.

The income tax on the return does take into account the $12,000 standard deduction.

[psumom122]

Thank you!