topic Is ACA penalty payable? in Get your taxes done using TurboTax

Is ACA penalty payable?

Ankur — Wed, 05 Jun 2019 01:44:17 GMT

My spouse, I and child (10 year old) entered US at end of Apr-17. I was covered through employer insurance for complete 2017 but spouse and kid were not covered for whole of 2017. Income is 89000/- USD.

1. Are we liable to pay penalty under ACA when no exemptions (other than not being in US) are applicable?

2. If we are NOT liable to pay penalty, do we still need to fill Form 8965?

You will not be subject to the penalty because they were...

Vanessa — Wed, 05 Jun 2019 01:44:18 GMT

You will not be subject to the penalty because they were out of the US for 330 days prior to entering the US, therefore, they were not required to have insurance.

The tax penalty for not having health insurance in 2017 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 12-month period that includes all or part of 2017.

[Edited 3/11/2018 7:33PM EST]

Thank you for reply. Confusion is that IRS ACA penalty ca...

Ankur — Wed, 05 Jun 2019 01:44:19 GMT

Thank you for reply. Confusion is that IRS ACA penalty calculator is showing 0 penalty if I enter Jan-Mar as months for which we were out of USA. Why is penalty calculator not showing any penalty?

Also arrival date in US is 4/29/2017. Will April be applicable for penalty completely?

April would not count for the penalty. If you are exempt...

Vanessa — Wed, 05 Jun 2019 01:44:21 GMT

April would not count for the penalty. If you are exempt for part of a month you are exempt for the entire month.

What other information did you enter in the penalty calcu...

Vanessa — Wed, 05 Jun 2019 01:44:22 GMT

What other information did you enter in the penalty calculator?

Actually, please see edit. Because they were out of the...

Vanessa — Wed, 05 Jun 2019 01:44:23 GMT

Actually, please see edit. Because they were out of the country for 330 days prior to coming here including time in 2017 they are not subject to the penalty.

Key information entered is: 1. Income 89000 2. Filling M...

Ankur — Wed, 05 Jun 2019 01:44:25 GMT

Key information entered is:

1. Income 89000
2. Filling Married Jointly
3. Total number of family members 3
4. Myself covered and spouse/kid not covered
5. No exemption for months from May till Dec
6. Exemption for all 3 of us from Jan till Apr - Not lawfully present in US

It is the 330 day rule that is having you exempt.

Vanessa — Wed, 05 Jun 2019 01:44:27 GMT

It is the 330 day rule that is having you exempt.

Thanks so much for detailed answers. Please help with las...

Ankur — Wed, 05 Jun 2019 01:44:28 GMT

Thanks so much for detailed answers. Please help with last 2 very important questions:

My tax return generated showed Line 61 as having complete duration as being covered. Since my tax return includes my spouse and kid as well, will this be considered wrong to claim that there was complete coverage? If yes, am I required to state that the complete coverage was not there and file Form 8965 along with Form 1040.

On the left-hand side of your screen click on Tax Tools>>...

Vanessa — Wed, 05 Jun 2019 01:44:30 GMT

On the left-hand side of your screen click on Tax Tools>>>Tools>>>Delete a form and then look to see if a 8965 is in there.

The 8965 needs to be included with your return for your...

Vanessa — Wed, 05 Jun 2019 01:44:31 GMT

The 8965 needs to be included with your return for your family. If there was not full year coverage, the box shouldn't be checked. <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/i1040gi.pdf">https://www.irs.gov/pub/irs-pdf/i1040gi.pdf</a> Page 52

How is 330 day rule calculated in this context when my wi...

Ankur — Wed, 05 Jun 2019 01:44:32 GMT

How is 330 day rule calculated in this context when my wife and kid entered US for first time on 4/29/2017?