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?

sd7 — Thu, 06 Jun 2019 09:05:00 GMT

You most likely do not have to worry about the penalty. A...

MichaelMc — Thu, 06 Jun 2019 09:05:02 GMT

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.