TurboTax FAQ
TurboTax FAQ
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2014 Federal 1040: Medicaid Gap Exemption

The new Affordable Care Act (ACA) requires most Americans to have health insurance for 2014 or pay a penalty. They may not have to pay the penalty if they qualify for an exemption.

One of these exemptions is called the Medicaid Gap exemption. If a taxpayer lives in a state that didn’t participate in Medicaid expansion under ACA, they may be eligible for an exemption from the penalty if their household income is below a certain amount.

Those states for 2014 were: Alabama, Alaska, Florida, Georgia, Idaho, Indiana, Kansas, Louisiana, Maine, Missouri, Mississippi, Montana, North Carolina, Nebraska, New Hampshire, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Wyoming, or Wisconsin.

Certain customers, who lived in one of those states, received social security benefits and did not have health insurance, may have filed an incorrect tax return.

TurboTax has fixed this issue.

How to tell if you may be impacted

You may be affected if ALL of the following are true:

  • You filed your Federal Form 1040 prior to 02/25/2015 AND
  • You had social security benefits on Form 1040, page 1, line 20a that were not included in taxable social security benefits on line 20b AND
  • You do not have a health care penalty on Form 1040, Line 61 (1040A, Line 38 or 1040EZ, Line 11)

If you are affected, you may have underpaid your federal income tax. You may need to amend your Federal return and pay the penalty.

To amend your return:

  • Follow these amend instructions for the TurboTax Online product.
  • Follow these amend instructions for the TurboTax CD Download product.
  • After you make the changes to your tax return, you will need to mail a copy of your amended return.
  • Your printed return(s) will include instructions on how and where to mail it.

If you need to contact us, please use the phone number in the email from TurboTax and tell the representative you’re calling about the 2014 Federal 1040: Medicaid Gap Exemption.