For 2017, only my wife does not have insurance covered for two months from Jan and Feb. From Mar to Dec, she has but why turbotax does not qualifies short coverage gap?

[tkimva]

for 2017, only my wife does not have insurance covered for two months from Jan and Feb. From Mar to Dec, she has but why turbotax does not qualifies short coverage gap? 

It says "we can waive part of the penalty" but why there is the remaining penalty?

[KrisD · Accepted solution]

In order to qualify for the short coverage gap exemption when you or a household member had no coverage in January, you need to answer the question on the following screen concerning November and December of 2016. (please see screenshot below) 

The new year does not "restart" the coverage requirement. If she had coverage December 2016, the short gap exemption should be applied. If she did not, the penalty would continue through into 2017 and penalize you for the months. 

FOR THE FOLKS USING DESKTOP:

During maintenance of this section, go into Forms Mode located on the top right of the screen (see screenshot)

Look at Personal Worksheet

Scroll to Part VI on the worksheet

Click that you had coverage prior year November and December if applicable (see screenshot)

The line above will change from No to Yes (see screenshot) 

Repeat for all worksheets (dependents) (see screenshot) 

Penalty will be waived

[Edited 02.26.2018 | 4:37PM]

[high-g]

I cannot find that screen. Where is it?

[KrisD]

Which version of Turbotax are you using? Are you also claiming no insurance for Jan and Feb only?

[high-g]

It's the Deluxe version. Yes, I'm claiming no insurance for Jan. and Feb. only. Thank you.

[KrisD]

online or desktop?

[high-g]

desktop

[KrisD]

AND one last question I hope, did you transfer last years information/return over from last year? Did you have coverage reported in last years program that was transferred over? If so, did you have insurance in Dec and Nov 2016? And is your 2017 return calculating a penalty on your 2017 return?

[high-g]

I did not transfer last year's information over from last year. The return was prepared manually last year. I had coverage for all of 2016, including Nov. and Dec. The 2017 return is calculating a penalty of $209.

[KrisD]

OK!!!! Seems there was/is maintenance going on in this section of the desktop, but we have a solution. Go into FORMS mode (top right corner) click on PERSONAL WKS and  scroll down to Part VI. Check "Check if covered or exempt for prior year November and the same on the line under for December. I will add screenshots above in the original answer, I can't put them into comments. It will take me a couple of minutes. You need to do this for each member that did not have coverage in the household.

[KrisD]

Please see updated answer

[high-g]

That will work. Thank you very much for all your efforts, Kris. Much appreciated.

[KrisD]

That was fun. Thank you for using TurboTax.