topic Do daca students need to pay penalty for no health insurance in Get your taxes done using TurboTax

Do daca students need to pay penalty for no health insurance

minielsjns — Wed, 05 Jun 2019 21:29:20 GMT

As a current DACA recipient can I claim an exemption from the health insurance tax for no insurance.

As a DACA (Deferred Action for Childhood Arrivals) indivi...

GeoffreyG — Wed, 05 Jun 2019 21:29:21 GMT

As a DACA (Deferred Action for Childhood Arrivals) individual, you are indeed exempt from the (2016) requirement to have health insurance, or pay a tax penalty for not having it. The Affordable Care Act (a.k.a. Obamacare) contains provisions that exempt DACA persons from the tax penalty. You can read more about that at the following website:

http://obamacarefacts.com/questions/will-penalties-include-daca-recipients/

However, if you are in the DACA program, you should otherwise consider yourself a resident alien for tax purposes. As such, you are subject to generally the same US income tax reporting rules and laws as are full US citizens. In fact, for income tax purposes, you will treat yourself no differently, and you should file the same Form 1040 (or 1040A or 1040EZ) that everyone else does, provided they are US citizens or resident aliens.

Therefore, in order to take the DACA health care penalty exemption (Code "C" on Form 8965), on your tax return, and get this to generate properly in the TurboTax program, you should visit the Heath Insurance section tab of the main federal program, and proceed to answer the interview questions in a manner identical to (or very similar to, depending on your version of the TurboTax software) the screen-capture images below. Simply click the pictures to open.

Completing the health care interview in this manner will cause Code C to appear on Form 8965 (the Obamacare tax penalty exemption form). These steps have been checked and verified in the program.

Thank you for asking this question.

Re: Do daca students need to pay penalty for no health insurance

lennruiz — Sun, 16 May 2021 16:04:31 GMT

a health tab does not appear for me.

Re: Do daca students need to pay penalty for no health insurance

DoninGA — Sun, 16 May 2021 16:05:51 GMT

@lennruiz wrote:

a health tab does not appear for me.

There is no penalty for not having health insurance on a 2020 federal tax return.

Re: Do daca students need to pay penalty for no health insurance

lennruiz — Sun, 16 May 2021 16:11:26 GMT

it showed one for me, so I went back and put that I was covered and it went away. Now I can't find it to change it and don't want to file with that wrong.

Re: Do daca students need to pay penalty for no health insurance

DoninGA — Sun, 16 May 2021 16:14:15 GMT

@lennruiz wrote:

it showed one for me, so I went back and put that I was covered and it went away. Now I can't find it to change it and don't want to file with that wrong.

You only have to report health insurance on a federal tax return if you had coverage through one of the State Marketplace Exchanges and received a Form 1095-A. If you did not have insurance through one of the Marketplace Exchanges you would not have received a 1095-A, so there would be nothing to report on the tax return for health insurance.