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I make less than the federal poverty level for a single person. Do I qualify for an exemption to the health insurance penalty?

i made less than 11,770. I was uninsured for 4 months, giving me a 200+ penalty. Should I apply for an exemption based on my income?
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1 Reply
NicoleU
New Member

I make less than the federal poverty level for a single person. Do I qualify for an exemption to the health insurance penalty?

In order to confirm whether you are exempt from paying the shared responsibility payment or penalty, you will need to the following calculation and check the chart.

  1. Household income is the modified adjusted gross income of you, your spouse (if filing jointly), and any dependents who are required to file a tax return.  Modified adjusted gross income is the adjusted gross income from the tax return plus any excludible foreign earned income and tax-exempt interest received during the taxable year.

You will need to get his Adjusted gross income (AGI), please see the following steps in TurboTax:

  • Once logged in, please click on My Account
  • click Tools
  • Other helpful link, then View Tax Summary (please see screen shot)
  • click Preview my 1040 (please see screen shot)
  • It would be on page 1, look for line 37 (Form 1040)
  • It would be on page 1, look for line 21 (Form 1040A)
  • It would be on page 1, look for line 4 (Form 1040EZ)

Next, to calculate your modified adjusted gross income (MAGI), take your AGI and add back certain deductions. Many of these deductions are rare, so it's possible your AGI and MAGI can be identical. According to the IRS,  MAGI is AGI with the addition of the following deductions, if applicable:

  • Student loan interest
  • One-half of self-employment tax
  • Passive loss or passive income
  • IRA contributions, taxable social security payments
  • The exclusion for income from U.S. savings bonds
  • The exclusion under 137 for adoption expenses
  • Rental losses
  • Any overall loss from a publicly traded partnership

2. Tax Return filing threshold is the minimum amount of gross income an individual of your age and with your filing status must make to be required to file a tax return.

In order to view the 2016 Federal Tax Filing Requirement Thresholds, please click this link: https://www.irs.gov/affordable-care-act/individuals-and-families/aca-individual-shared-responsibilit...







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