Define "short term gap" exemption on ACA

[mrtax]

Different websites show the gap exemption as "less than 3 months" or "3 months or less". Any thoughts?

[mactoolsix]

Per section 5000A

http://www.law.cornell.edu/uscode/text/26/5000A#e_4

(4) Months during short coverage gaps
(A) In general
Any month the last day of which occurred during a period in which the applicable individual was not covered by minimum essential coverage for a continuous period of less than 3 months.

Also note this link is included in the Exemptions tab of the worksheet I posted earlier

http://forum.thetaxbook.com/showthread.php?24588-Spreadsheet-for-8-exemption/page2&p=167827

Mike

[DaveinTexas]

I don't know if this has been mentioned but

this could happen to some of our clients so it is worth mentioning:

Payment Waived for First Part of Coverage Gap Spanning Multiple Years. The statute provides an exemption for gaps in coverage of less than three months. It generally specifies that such gaps be measured without regard to the calendar years in which the gap occurs. For example, a gap lasting from November through February lasts four months and therefore generally would not qualify for the exemption. However, recognizing that many individuals file their tax returns as early as January, before the length of an ongoing gap may be known, the Treasury regulations provide that if the part of a gap in the first tax year is less than three months, then no shared responsibility payment is due for the part of the gap that occurs during the first calendar year, regardless of the eventual length of the gap. For example, for a gap lasting from November through February, no payment would be due for November and December.

[ATSMAN]

I have a feeling a lot of taxpayers may get the exemption for 2014. Look at the exemption #14 (the catchall) from the list of exemptions.