All Things Tax

All Things Tax

Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.

Posts: 1
Registered: ‎02-18-2018

Health insurance unaffordable


I am applying for an exemption based on affordability. I have two kids and insurance cost for family plan is more than 8.16% of my household income. However, my employer have different insurance options: 1. myself 2. me and spouse 3. me and children 4. family. Options 1, 2,3 have insurance premiums less than 8.16% whereas option 4 (family) has insurance premium more than 8.16%. I am insured all the time. Can I apply for affordability exemption (Code A) on form 8965 for my spouse and kids? If I apply for this exemption, do I need to send the form 8965 and other documents to the marketplace for approval?

Also, as I got the job in January, my family have Medicaid for Jan-Feb; and later I applied for CHIP and my kids are insured from July-dec. This means my wife is uninsured from march-dec and my kids are uninsured from march-june. Can I still apply for exemption based on affordability as mentioned above?


Thank you

Associate (Pioneer)
Posts: 37
Registered: ‎01-08-2018

Re: Health insurance unaffordable

Hello Sandy6,


Welcome to H&R Block Community.


There are a few ways that an exemption is granted. Some exemptions must be done through the Marketplace and some are allowed on your income tax return.


You may qualify for a low-income exemption. This exemption is allowed on your income tax return. You do not need to file any paperwork with the Marketplace. The H&R Block program will determine if you qualify for this exemption. 


In the Affordable Care Act section, you will enter the information specific to each person on your return. The program will ask you the months each person was covered. Then it will determine if you qualify for an exemption for the remaining months.


If you don’t qualify for the low-income exemptions, I would suggest using this tool to determine if any other exemptions apply to your situation.

I hope this helps you out! Please ask if you have any further questions.

Lacy J
Tax Research Specialist