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: ‎02-07-2017
Accepted Solution

How to Report Exemption for Health Care Sharing Program

My family participates in a Christian Health Care Sharing ministry which is an approved exemption from the Affordable Care Act.  Unfortunately, this year's version of the software does not make it clear how I report this in the Taxes section.  

 

Last year, there was an option built into the program to handle this situation, but I am not finding it this year.  

 

Can you please direct me how to apply this exemption in the 2016 software?

 

Thanks.

Trusted Council Member
Posts: 6,191
Registered: ‎02-23-2016

Re: How to Report Exemption for Health Care Sharing Program

Hi davidcfox1,

 

Welcome to the H&R Block community.

 

I will gladly help you figure this out.

 

Please look for a private message from me.

 

Louis,

Senior Tax Advisor (Tampa, FL)

Trusted Council Member
Posts: 6,191
Registered: ‎02-23-2016

Re: How to Report Exemption for Health Care Sharing Program

Hi David,

 

This is the what you'll need to do.  I wrote this procedure using the online version of the software, however it should be pretty much the same in the desktop interview.  Please follow these steps:

 

  1. Tell the software you did not have insurance at all.
  2. Click "next".
  3. Click "next" on the next two screens.
  4. Click "next".
  5. Click "next".
  6. Answer the question and then click "next".
  7. Answer the questions and then click "next".
  8. Click "next".
  9. Click "next".
  10. A list of exemptions will be offered inclding the healthcare sharing ministry exemption.  Scroll all the way down and answer the question "YES" that you would like to claim one of these exemptions.
  11. Click "next".
  12. Make the appropriate selections from the drop-down menus and then click next.
  13. You're all done.

 

Let me know if you have any further difficulty.

 

Louis

Valued Pioneer
Posts: 3
Registered: ‎02-07-2017

Re: How to Report Exemption for Health Care Sharing Program

Thanks Louis.  What you described is what I was expecting to find in the software (Desktop Premium).  Unfortunately, the current version of the software does not contain the list of exemptions you reference in step 10.

 

Is there any way to report this issue to the HR Block development team to see if they intend to include this in a future software update?

Trusted Council Member
Posts: 6,191
Registered: ‎02-23-2016

Re: How to Report Exemption for Health Care Sharing Program

Hi davidcfox1,

 

You're welcome.

 

Unfortunately I cannot access desktop to see what they changed in it or where the exemptions are in that version, however you can access the forms themselves and fill them out manually.  For exemptions it's Form 8965 that you'll need to fill out, and the healthcare sharing ministry exemption is claimed using exemption code "D".

 

You can also call support at 1-800-HRBLOCK or go through online chat to speak to an agent who can help you with things in the desktop version.

 

ONLINE CHAT SUPPORT

 

Chat is available Monday through Friday from 8am to 5pm.

 

Louis

Valued Pioneer
Posts: 3
Registered: ‎02-07-2017

Re: How to Report Exemption for Health Care Sharing Program

I decided to step carefully through the Health Care Coverage section again tonight and was able to find the answer to my question.  It is not obviously in the program if you follow through step by step, but I was able to find it by doing the following:

 

1. Visit Taxes -> Health Care Coverage

2. Choose "None of us had insurance at any time in 2016.

3. Click Next

4. Click Next

5. Answer "Nondependents In Your Household" question...I answered "No"

6. Click Next

7. "Marketplace Exemptions" -> Select "No" for both quetions

8. Click Next

9. Click Next on the "Marketplace Exemption Certificate" view

10. Click "Finished"

11. Answer "Dependent Returns" 

12. Click Next

13. Click Finished

14. This is the key step you need...on the "Exemptions You Might Qualify For" view, select "Yes"

15. Click Next

16. Add the exemptions for each of your family members, the "Add Exemption" page will have the "Healthcare Sharing Ministry" option available.

17. Click "Finished"

18. Receive the "No Shared Responsibility Payment" view!

 

I'm not sure how I missed this the first few times through the section, but I hope this helps someone else.  

 

Thanks to LouisH for your help and for convincing me that this had to be in the software somewhere.  

 

I even spent 40 minutes on live chat today with HR Block and they could not direct me how to do this...

 

Pioneer
Posts: 1
Registered: ‎02-17-2018

Re: How to Report Exemption for Health Care Sharing Program

Thank you so much! We have spent 2 hours trying to figure it out, called and got no where. We ran across what you said and it worked! What a relief. THANKS YOU!

Pioneer
Posts: 1
Registered: ‎04-05-2018

Re: How to Report Exemption for Health Care Sharing Program

Thanks very much for this solution.  My wife was on health share plan and I'm on Medi-Care.  I never would have figured this out and was preparing to submit return as a hard copy so I could manually complete form 8965.  When I called H&R Block the person I spoke with had no idea how to navigate this section of software.

Highlighted
Pioneer
Posts: 1
Registered: ‎04-16-2018

Re: How to Report Exemption for Health Care Sharing Program

We were in a similar situation where most of my family was covered by some qualifying insurance plan, but my wife was covered by a health care sharing ministry. In this case, we started the process by clicking the "Neither Applies – my household was partially covered in 20xx" but from there we ended up plowing into the weeds on H&R Block.com. Based on the excellent answer on this page, here is how we eventually navigated the system to enter the correct coverages and exemptions:

 

Page 1: Did everyone in your household have health insurance in 2017?

  • option 3: Neither applies – my household was partially covered in 2017.

Page 2: What kind of insurance did your household have in 2017?

  • checked options that applied to the covered members of our household.

Page 3: Here's what you need to know about the ACA.

  • click Next

Page 4: Let's talk about any nondependents in your household.

  • check No

Page 5: Let's talk about marketplace exemptions.

  • check No for both questions

Page 6: Now, tell us about any 2017 returns your dependents are filing.

  • enter information as needed

Page 7: Now, tell us when each person in your household had health insurance in 2017

  • click Edit next to each household member and enter coverage information
  • for the exempt member, enter either No for coverage or uncheck all three of the first boxes and enter months that the member was covered by something other than the health sharing ministry.
  • When all members of the household have been edited, click Next

Page 8: "Do you want to apply for an exemption?"

  • click Yes

Page 9: Which exemption are you applying for?

this is where the magic door opens

  • Choose the name, appropriate exemption, start and end months. Done! Smiley Wink

Page 10: Great news! You don't owe a shared responsiblity [sic] payment for 2017.