Do I need to pay any state penalty if I file jointly as my spouse doesn't have health insurce.

[sivaram9]

I live in Mass and I got married in month of Dec outside USA. My wife moved with me at the end of Dec and she got insurance from Jan 1st.  Do I need to pay Mass health penalty as she didn't have any health insurance for 6 or 7 days in 2021. How should I fill health info when filling state tax forms. TIA

[LenaH]

No. If she moved into Massachusetts during the year, the health care mandate only applies to her beginning on the first day of the third full month following the month she became a Massachusetts resident.

Health care reform for individuals

[sivaram9]

Thanks for your response @LenaH . Can you please help me in navigating while filling state health information in TurboTax. I'm can either select "met MCC" or "didn't meet MCC". TIA

[LenaH · Accepted solution]

To remove the penalty from your return: 

1. Open your return.
2. Click on State on the left-hand side.
3. Continue your Massachusetts return.
4. Continue to the page Health Insurance Information, click on your spouse's name. 
5. On the page When did xx (spouse) have minimum creditable coverage? Answer Spouse health insurance never met MCC in 2021. 
6. Continue past the page Spouse might be Eligible for Low- or No-cost Health Insurance Coverage.
7. Answer no to the following questions about religious exemptions, Certificate of Exemption, whether an employer offered spouse insurance and government-subsidized health insurance. 
8. Your next screen will show a penalty. 
9. On the screen Health Insurance Information, enter I've entered everything - let's move on. 
10. Answer that you want to appeal on the page Health Care Appeal Needed?

On the following screen, TurboTax will state that your appeal form will be mailed to you in the mail. In the meantime, your Massachusetts tax return will not be affected and there will be no penalty on the return because you are appealing. Once you get the paperwork, fill in her exemption reason (in Massachusetts less than a month) and you will not have to pay the penalty. 

@sivaram9

[sivaram9]

@LenaH Thank you so much for the detailed response. I have spent close to 3 hrs in finding solution to my problem.