So when filling through turbo tax i selected that none of us were covered at all this year. It then said due to my situation the panalty fee was waived. Why ?

[CherylW]

Here are the reasons your penalty could have been waived:

• Coverage is considered unaffordable    
• Short coverage gap  
• Income below the return filing threshold 
• Citizens living abroad and certain noncitizens 
• Aggregate self-only coverage considered unaffordable 
• Resident of a state that did not expand Medicaid
• States that did not expand Medicaid for all of 2017: Alabama, Florida, Georgia, Idaho, Kansas,  Maine, Mississippi, Missouri, Nebraska, North Carolina, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Wisconsin, and Wyoming.)
• Members of a health care sharing ministry
• Members of Indian Tribes 
• Incarceration

You can see the full text here:

Health Care Coverage Exemptions