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.

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Pioneer
Posts: 1
Registered: ‎03-13-2018
Accepted Solution

Health Care Exemption-Short Gap Coverage

I am in the process of filing my return and I know I qualify for the Short Gap Coverage exemption. When I file my federal taxes I still have to put in that I was not covered for 1 month correct? Will the penalty fee be given back to me in my tax return once I file the 8965 form? 

 

Thank you!

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Council Member
Posts: 516
Registered: ‎04-06-2016

Re: Health Care Exemption-Short Gap Coverage

When you fill out the interview for the health insurance section, you should be able to indicate that you qualify for the short-gap exemption.  No penalty will be added to your return for the month you qualified for that exemption.  If you had coverage the other months, you'll be all set.


Karen

Pioneer
Posts: 2
Registered: ‎04-08-2017

Re: Health Care Exemption-Short Gap Coverage

Hi, I went through the interview process and I didn't see the option for the gap coverage exemption. Can you please provide details on where I can access it? Thank you.

 

Eddie

Council Member
Posts: 516
Registered: ‎04-06-2016

Re: Health Care Exemption-Short Gap Coverage

Eddie, 
I just realized that with the desktop software, at least, the program automatically calculates and applies the short gap coverage exemption if you're eligible.  You'll need to make sure to correctly indicate which months you were covered (after telling the program you weren't covered all year) in order to have it do this correctly.

 

To check, look for Form 8965 with your return. It'll be code B for the month you weren't covered. You can also check your 1040 to see if you're being charged a Health Care individual responsibility amount on Form 1040, Line 61.

 

Karen