Is ACA penalty payable?

Forum|Forum|7 years ago
June 5, 2019
1 reply
19 views

My spouse, I and child (10 year old) entered US at end of Apr-17. I was covered through employer insurance for complete 2017 but spouse and kid were not covered for whole of 2017. Income is 89000/- USD.

1. Are we liable to pay penalty under ACA when no exemptions (other than not being in US) are applicable?

2. If we are NOT liable to pay penalty, do we still need to fill Form 8965?

TurboTax PLUS Online

Best answer by Vanessa11_2

You will not be subject to the penalty because they were out of the US for 330 days prior to entering the US, therefore, they were not required to have insurance.

The tax penalty for not having health insurance in 2017 can be waived if the individual was a U.S. citizen or resident but lived in a foreign country or U.S. territory for at least 330 days within a 12-month period that includes all or part of 2017.

[Edited 3/11/2018 7:33PM EST]

Vanessa11_2Answer

Level 13

You will not be subject to the penalty because they were out of the US for 330 days prior to entering the US, therefore, they were not required to have insurance.

[Edited 3/11/2018 7:33PM EST]

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AnkurAuthor

Level 2

Thank you for reply. Confusion is that IRS ACA penalty calculator is showing 0 penalty if I enter Jan-Mar as months for which we were out of USA. Why is penalty calculator not showing any penalty?

Also arrival date in US is 4/29/2017. Will April be applicable for penalty completely?