turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Hector2
New Member

My son will soon do his tax returns and Tricare dropped him off coverage for November & December 2016. Will he have to pay a penalty for the last two months?

 
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions

My son will soon do his tax returns and Tricare dropped him off coverage for November & December 2016. Will he have to pay a penalty for the last two months?

No, he will not, because of the short coverage gap exemption to a tax penalty.  If you are uncovered for any day during only two consecutive calendar months in the year, you will not owe a penalty.  You son can use exemption code 'B' on his tax return.  If he remains uncovered in January of this year, however, he will owe a penalty next year.

EDIT:  As originally written, this is confusing.  You have to not be covered on any day during the months in question.  If you are covered for even one day during a month, that counts as covered for the purposes of the ACA.

View solution in original post

1 Reply

My son will soon do his tax returns and Tricare dropped him off coverage for November & December 2016. Will he have to pay a penalty for the last two months?

No, he will not, because of the short coverage gap exemption to a tax penalty.  If you are uncovered for any day during only two consecutive calendar months in the year, you will not owe a penalty.  You son can use exemption code 'B' on his tax return.  If he remains uncovered in January of this year, however, he will owe a penalty next year.

EDIT:  As originally written, this is confusing.  You have to not be covered on any day during the months in question.  If you are covered for even one day during a month, that counts as covered for the purposes of the ACA.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question