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New Member
posted Jun 1, 2019 5:53:17 PM

Am I eligible for Obamacare penalty exemption?

Hi,

I wasn't insured until August of last year through my partners employer. I had my taxes done by a CPA and was told I owe $695. I made less than 13k last year. When I input my info into TurboTax, it waives the penalty. My partner made significantly more than I did and his was waived as well. 


Is this an error on TurboTax or did my CPA overlook a possible exemption?

Thanks for any help.

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6 Replies
Alumni
Jun 1, 2019 5:53:18 PM

Likely you qualify for the 'unaffordable' exception. Please define 'made less then $13k'. What income sources? Filing single? Any untaxed income? Did you get a 1095-A?

New Member
Jun 1, 2019 5:53:20 PM

my income source is my mothers trust. i have a 1095-c from my partners employer showing i was insured from august onward. i am filing single.

Alumni
Jun 1, 2019 5:53:21 PM

For the months you were uninsured, you can select 'Unaffordable' as reason; TurboTax is correct.

Level 3
Jun 1, 2019 5:53:22 PM

If you did not have to select that insurance was unaffordable, it is because your income is low enough that TurboTax determined that you automatically qualified for the exemption based on your income.  One of the exemptions is that you lived in a state that did not expand Medicaid and your household income was below 138% of the federal poverty level.  This is an exemption TurboTax would automatically apply. 

https://www.healthcare.gov/health-coverage-exemptions/forms-how-to-apply/

New Member
Jun 1, 2019 5:53:23 PM

thanks for your response. the IRS told me the same today. it appears my preparer has already filed my taxes. i was told to submit a 1040x and select i am exempt and remit the difference minus the $695. i am finding conflicting info about what else to submit with this -- am i supposed to include form 8965? i have read it's not necessary but want to cover all the bases. thank you for your help!

Level 3
Jun 1, 2019 5:53:24 PM

It wouldn't hurt to include it.  Better to have it and not need it than need it and not have it.