Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
l-jing89
New Member

I wanted to file jointly with my dual-status spouse who does not have health coverage for JAN-APR 2018, is he qualified for penalty exemption under code C?

My husband came to the US in March and was added to my insurance since May after we got married. He had no income worldwide in TY 2017. He's a dual-status nonresident as he was a nonresident at the beginning of the year but a resident at the end of the year under Substantial Presence Test. 

We wanted to file jointly to minimize our tax liability. Is he qualified for a health insurance penalty exemption for JAN and FEB under exemption code C below since he wasn't physically present in the US for these two months? I am a little confused and not sure if the underlined exception prevents us from claiming the exemption as to file jointly, we need to make an election to treat my husband as a resident alien for the whole year. 


Citizens living abroad and certain noncitizens — You were: 

? A U.S. citizen or resident who was physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months; 

? A U.S. citizen who was a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year; 

? A bona fide resident of a U.S. territory; 

? A resident alien who was a citizen or national of a foreign country with which the U.S. has an income tax treaty with a nondiscrimination clause, and you were a bona fide resident of a foreign country for an uninterrupted period that includes an entire tax year; 

? Not lawfully present in the U.S and not a U.S. citizen or U.S. national. For this purpose, an immigrant with Deferred Action for Childhood Arrivals (DACA) status is not considered lawfully present and therefore qualifies for this exemption. For more information about who is treated as lawfully present in the U.S. for purposes of this coverage exemption, visit www.HealthCare.gov; or 

? A nonresident alien, including (1) a dual-status alien in the first year of U.S. residency and (2) a nonresident alien or dual-status nonresident alien who elects to file a joint return with a U.S. spouse. This exemption doesn’t apply if you are a nonresident alien for 2017, but met certain presence requirements and elected to be treated as a resident alien. For more information see Pub. 519.

1 Best answer

Accepted Solutions
TaxGuyBill
Level 9

I wanted to file jointly with my dual-status spouse who does not have health coverage for JAN-APR 2018, is he qualified for penalty exemption under code C?

I would check the box that says he was outside of the US for 330 days in a 12 month period (March 2016-March 2017).

Then it will ask you the months, and you should check January, February and March.

Because he had insurance since May, April qualifies as a "short gap" to waive the penalty for that month.

View solution in original post

1 Reply
TaxGuyBill
Level 9

I wanted to file jointly with my dual-status spouse who does not have health coverage for JAN-APR 2018, is he qualified for penalty exemption under code C?

I would check the box that says he was outside of the US for 330 days in a 12 month period (March 2016-March 2017).

Then it will ask you the months, and you should check January, February and March.

Because he had insurance since May, April qualifies as a "short gap" to waive the penalty for that month.

Dynamic AdsDynamic Ads
Privacy Settings
v