I had health insurance through the Marketplace in 2018 and paid my premiums Jan to Aug. I filed for bankruptcy and did not pay premiums for Sept to Dec. so I am subject to penalty for 4 months. How do I report this on my 2018 tax return and do I have to pay this when I file my return?
When you enter the Health Insurance section of your return, TurboTax will ask you questions about your coverage and determine if you owe a penalty based on your answers. The program will also help you determine whether or not you qualify for an exemption from the penalty.
If a penalty does apply in your situation, it is added to the tax liability calculated on your return. If your tax withholdings and other tax payments and credits are not enough to satisfy your tax liability, you return will show a tax due. If this is the case, the program will provide you with options for paying your tax due and will include an option for setting up a payment plan if you can't pay the entire amount all at once.
Turbo Tax is not calculating the penalty for not having insurance for 4 months of the year. There is a penalty due (confirmed with Health Care Marketplace). Also entered info from 1095A for months had insurance. It showed had to pay back some of premium tax credits. Don't know how to answer questions in Turbo Tax for it to calculate the penalty for not having insurance for 4 months as well as the premium tax credits which have to be paid back. I did check the box for hardships because of filing for bankruptcy. My understanding is that penalty for not having ins. for 4 months has to be paid with tax return and then file application to get amount refunded. If this is wrong let me know.