I claim my parents as dependents, they live in Mexico. With the Affordable Care Act, does that mean they needed coverage even if they didn't live here last year?

[gbriseno15]

My parents live in Mexico. I claim them in my taxes as dependents every year, but with the Affordable Care Act, does that mean they needed insurance coverage in the USA even if they didn't live here last year? Will I need to pay the healthcare penalty if they didn't have coverage?

[Fern]

If a dependent is living outside of the US for more than 330 days in a year, they are not subject to the Affordable Care Act requirements and you won't have a penalty for them. You need to file exemption form 8965 to claim the exemption.

In Turbo Tax, you would indicate that they did not have insurance in 2015.  You would also indicate that they were not required to have insurance because they were a resident of foreign country or U.S. territory. (see screenshot below)