3/5 of us did not have insurance in 2016. It says based on our situation penalty has been waived. Tax act online said different??

[SweetieJean]

"it says" Who/what exactly is It?

[tiffanydyches]

It told me on turbotax that "based on our situation the penalty has been waived"

[tiffanydyches]

"This means your taxes won't be affected for not having health insurance"

[TaxGuyBill]

Have you entered all of you income already?

There are a few penalty exemptions (such as low income) that TurboTax automatically applies.  I do not know if TaxAct does that or not.  When you print out your tax return, look at Form 8965.  Is the box for Line 7 checked?  In Part III, what letter is in column C?

[tiffanydyches]

I'll let you know soon as I print. Very helpful.

[tiffanydyches]

The letter is G. What does that mean?

[tiffanydyches]

7 is not checked

[TaxGuyBill]

Although there are several possibilities for "G", the one that TurboTax would automatically apply is "Resident of a state that did not expand Medicaid".  That is use if your income is low enough that you WOULD have qualified for Medicaid (if your State had 'expanded' the program), but your State did not actually 'expand' their program.

So most likely that is what it is doing, and TurboTax is automatically applying the exemption.  Is your total income (AGI, Line 38 of your Form 1040) less than $39,205 (if you are in the 48 States)?

[tiffanydyches]

Yes our income was only 33,000

[tiffanydyches]

So do I need to do anything else? The IRS isn't going to come after me later saying I owe the penalty are they?

[TaxGuyBill · Accepted solution]

Nope, you don't need to do anything else, and the penalty is properly waived.