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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Valued Pioneer
Posts: 3
Registered: ‎04-16-2018

Health Care Exemption

Hi, I hope I can get some help! I have a problem, I was not covered for exactly 3 months last year,
due to Medi-cal and Covered Calif not transferring me over properly. So now
I owe the penalties, which are most of what I make in a paycheck.
I could not have afforded coverage, and it was not offered through work.
I chatted with Covered Calif and they said I need to contact the
federal marketplace. After being on hold for 40 minutes, they said
that I have to contact Covered Calif. There is a form on the website,
but it is not for previous time. I know that if I file and say nothing,
I cannot amend my return. What can I do?
Thanks,
Carol

Valued Pioneer
Posts: 3
Registered: ‎04-16-2018

Re: Health Care Exemption

I am thinking that I need to tell them there is an issue so it is noted on my taxes, and file a form 8965. At least I am hoping this will work.

Council Member
Posts: 548
Registered: ‎04-06-2016

Re: Health Care Exemption

Carol, 
You can file your return without an exemption.  Pay what you can of the income tax you owe and then call the IRS and ask to talk to someone in their health care department.  Explain your situation to them and find out what they have to say.

 

They may be able to give you a payment plan or may be able to give you an offer-in-compromise (to reduce what you need to pay). See this thread for more information on the offer-in-compromise: https://community.hrblock.com/t5/Health-Care/Form-1095-A-and-HUGE-tax-liability/m-p/101983/highlight... .

 

Why did you say that you don't think you can amend your return? I don't think this is the case, but am wondering why you think so.


Karen

Council Member
Posts: 548
Registered: ‎04-06-2016

Re: Health Care Exemption

[ Edited ]

There's also more information about possible exemptions from the penalty here:  https://www.taxslayer.com/support/KnowledgebaseArticle2575.aspx?language=1 and here: https://www.irs.gov/pub/irs-pdf/i8965.pdf .


Karen