NJ Healthcare Exemption

[deuce1313]

 I am working on a NJ Return for someone who had a two month gap in Health insurance coverage during 2019. I went on the NJ Website and obtained an Exemption # but could not find the spot in the Turbotax interview where the Exemption # gets entered. Right now, Turbotax is calculating a penalty based on the 2 month gap because I have not entered the Exemption #.

[JotikaT2]

You will need to make your entries in the state interview section for New Jersey.

First, make sure you have entered the applicable information from your 1095-A form in the federal interview section of the program.

1. Select Deductions & Credits 
2. Scroll down to All Tax Breaks 
3. Select Medical 
4. Select Affordable Care Act (Form 1095-A) 

Next, go to the New Jersey interview section.  Proceed through the screens until you see the following screen:

Answer No above and continue through answering questions. 

After you answer the question above, you will be directed to a screen for the taxpayer's listed in the return.  Select Edit to the right of the applicable person. 

You will be directed to the following screen and will be able to enter your exemption number from New Jersey here.

[deuce1313]

Hi Jotika T2:

I am in the Return that I posted about right now and I am looking at NJ Form NJ-HCC -Part II- the Taxpayers name is entered and the months that he had insurance are checked off but under his name on the form I see a box that says Exemption Code and when I enter B-1 there nothing happens. There is nowhere to enter the Exemption #. I printed the actual NJ-HCC form off of the Internet and on that form it has a box saying Exemption# and not Exemption Code. I guess I could complete the form I printed out manually and override the amount on line 52 of the Return but I would rather not have to do that. Do you know where I am going wrong?

[JotikaT2]

First, I would recommend that you ensure your program is up to date.

Select Online in the top menu and Check for updates.

Review your input after you do the update. 

If it still doesn't change, I have another suggestion which has worked for others with different situations. 

Go back through the federal input section for the Affordable Care Act.  Try deleting the input and then go back and re-enter it.  Then try re-entering the exemption certificate number in the state interview section.

This may rectify your issues.  

[deuce1313]

Hi Jotika T2:

i checked for updates and my software is up to date. 

My Federal input for the Affordable Care Act is blank since I answered the question about getting a 1095-A with a no since my client did not receive a 1095-A. When you answer no- there is nothing to input. My client received two 1095-Bs for the two jobs he held during the year and there was a gap in health coverage for April and May 2019.

Any other ideas?

Thanks

Deuce1313

[JotikaT2]

Did you try deleting your input in the state interview section and re-entering it?

Also, make sure you only check the boxes for the months where the taxpayer did not have coverage.

I have included the instructions to Worksheet L.  This contains worksheets to help determine how much of the shared responsibility payment the taxpayer would be subject to based upon their income level and household size.

It may just be that the exemption is only reducing their liability because their income is higher that the threshold.

Worksheet L instructions

[emoshe112588]

I tried the steps mentioned in this article for TY22 and it still works. If you partially had insurance, In State Section, still select No Health Insurance to get exemption code options, within the screens it will allow you to enter months partially covered. 

( NJ main site: Shared Responsibility Exception )