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zouyuan
New Member

We received letter from IRS said we need to pay penalty for not having health insurance. But the reason we didn't buy is we really cannot afford $500/ month now $800/month

According to turbotax the premium is more than 8.13% of our income, is this right that we can exempt from penalty? or we might get audited again if now paying the penalty this time
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Marketstar
Level 7

We received letter from IRS said we need to pay penalty for not having health insurance. But the reason we didn't buy is we really cannot afford $500/ month now $800/month

Yes, if your health insurance expense is greater than 8.13 % of your household income you are exempt from the penalty.

You should walk through the Health Insurance portion of TurboTax for your 2016 return.

As you navigate forward, you will arrive at the Did anyone have a situation that waives the tax penalty for being uninsured? page

Click one of the two boxes under Couldn't afford insurance

Click Continue

 You will then arrive at the Select the months that health insurance was not affordable page where you will have the opportunity to select the months for you, your spouse, and dependents could not afforde health insurance

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1 Reply
Marketstar
Level 7

We received letter from IRS said we need to pay penalty for not having health insurance. But the reason we didn't buy is we really cannot afford $500/ month now $800/month

Yes, if your health insurance expense is greater than 8.13 % of your household income you are exempt from the penalty.

You should walk through the Health Insurance portion of TurboTax for your 2016 return.

As you navigate forward, you will arrive at the Did anyone have a situation that waives the tax penalty for being uninsured? page

Click one of the two boxes under Couldn't afford insurance

Click Continue

 You will then arrive at the Select the months that health insurance was not affordable page where you will have the opportunity to select the months for you, your spouse, and dependents could not afforde health insurance

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