topic A two-month gap qualifies; three does not; after you don'... in Get your taxes done using TurboTax

Dependent out of country on VACATION for Q1-2018 (3 month) & health insurance was dropped but insured from Apr-Dec 2018. Am I required to pay penalty for those 3 months?

nams — Mon, 03 Jun 2019 20:06:21 GMT

No, on the page asking 'Did you have a situation that wai...

MarilynG — Mon, 03 Jun 2019 20:06:23 GMT

No, on the page asking 'Did you have a situation that waives the tax penalty...?' in the Health Insurance section, go to 'Wasn't required to get insurance' (screenshot).

Choose 'Resident of foreign country..' to indicate that your dependent was not living in the US for the months indicated.

TurboTax will inform you that the '.. penalty has been waived' on the next screen.

If you don't qualify for an Exception, you may have part of the penalty waived (screenshot).

Edited 4/3/19 2:29 pm

Thanks for the response, Marilyn. When I followed the ste...

nams — Mon, 03 Jun 2019 20:06:25 GMT

Thanks for the response, Marilyn. When I followed the steps provided by you, I found the option and related exemption however when I clicked on "Learn more" link for "Resident of foreign country or U.S. territory", it says "Yes, the tax penalty for not having health insurance in 2018 can be waived if the individual was a U.S. citizen or resident but lived in a foreign country or U.S. territory for at least 330 days within a consecutive 12-month period that includes all or part of 2018." means minimum of 330 days whereas in my case, my dependent was in US for FULL 2017 (covered under health insurance) and were on vacation to home country ( I am a resident alien) only for 3 months (US insurance was dropped for these 3 months. Once back, dependent was again covered under insurance from Apr-Dec 2018.

Please guide me how to get exemption in this case.

Many thanks and much appreciated for your help !!

You may be able to get an exemption for 'short coverage g...

MarilynG — Mon, 03 Jun 2019 20:06:28 GMT

You may be able to get an exemption for 'short coverage gap' but you have to pay the Penalty and then apply for reimbursement, as stated on the same page.

Thank you for the response! can you please attach screens...

nams — Mon, 03 Jun 2019 20:06:29 GMT

Thank you for the response! can you please attach screenshot for the procedure ? I couldn't find 'Short coverage gap' option on the health Insurance page. Also, please help me to find the reference to apply for reimbursement on that page as could not find it.

A two-month gap qualifies; three does not; after you don'...

MarilynG — Mon, 03 Jun 2019 20:06:30 GMT

A two-month gap qualifies; three does not; after you don't choose an 'exception' you may get an Adjusted Penalty on the next page (added screenshot to original answer).