Health Care

Health Care

How do health care reform and taxes connect? The Affordable Care Act is single largest change to the tax code in two decades. Find help navigating the complexities of the new health care legislation, Medicare, Medicaid and other medical deductions.

Posts: 1
Registered: ‎02-03-2018
Accepted Solution

ACA Penalty Exemption (premium cost)

Hello everyone,


In November of 2016 I was hired at a new job. We declined the heathcare coverage at the initial hiring because it was too high for our family of 4 ($10200 premium annually). Since I was eligible for insurance through my employer, I could not get assistance for an ACA plan, making that overly expensive as well. We just couldn't afford it. 


My wife decides to return to school in the fall of 2017. In order for her to be a student, she was required to have insurance because she'll be working at medical facilities. We couldn't get any short-term coverage because it was mid-year, and we didn't have any life events to get her into an ACA plan. 


My company's open enrollment is July 1 (which is odd to me). Because we needed the insurance to get my wife into school, we signed up our family through my employer (she is not employed). Same rate as last year ($10,200 annually). 


TLDR: We had insurance July through December last year. However, it was very expensive. Our AGI was $54,487. According to the HR Block tax software, we qualify for an exemption because the annual premium would have exceeded $4,446 dollars. Am I correct that I will receive an exemption? I appreciate any help offered. 

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

Re: ACA Penalty Exemption (premium cost)

Hello Fry,


Welcome to H&R Block Community.


The ACA does have several exemptions offered and there are a few ways that an exemption is granted. Some exemptions must be done through the Marketplace and some are available directly on your tax return. The low-income exemption is available directly on the tax return. Both the H&R Block online system and the downloadable software will apply the exemptions that you qualify for and are available directly on the return.


If you have questions about other exemptions, you can use this tool to determine which exemption is applicable to your situation:


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


Lacy J

Tax Research Specialist