ACA simple question

[nwtaxlady]

Single taxpayer made $30,000. He didn't work January. He started his job in February. His employer coverage didn't take effect until beginning of May. So he was Covered May thru December. What do we have here?

* Is he considered uncovered for 4 months and pays penalty for all those 4 months or

* Does he get the Exemption code B for "short coverage gap" for 2 of the months and then pay penalty on the other 2 months? or

* Get the Code B exemption above and also code G for "Gap in coverage at the beginning of the year" not sure if this would apply because it is employer coverage and not purchasing thru the market place.

[TaxGuyBill]

Code "B" does not apply. The gap was not short, and so it does not apply at all.

Code "G" for "Gap in coverage at the beginning of the year" applies. It also applies to insurance outside of the Marketplace. Use that for all 4 months.

http://www.irs.gov/pub/irs-pdf/i8965.pdf#page=2

[nwtaxlady]

Code G applies to all 4 months?

Thanks TaxguyBill! I guess I don't understand the theory behind the code G for this scenario. I can see where the people that applied for coverage thru the marketplace because things were a fiasco and so giving them some "free time" while things are getting ironed out...knowing that coverage may not start on time since this is all new. But in my clients case, he just started a job and so his employer coverage did not take into effect until May due to waiting period etc.

[nwtaxlady]

TaxGuyBill.... Code G reads

Code G reads "Gap in coverage at the beginning of the year of 2014. You had a coverage gap at the beginning of 2014 but were either enrolled in, or were treated as having enrolled in, coverage through the Marketplace or outside of the Marketplace with an effective date on or before May 1, 2014.

So since this TP started a new job in February and had a waiting period and then was elgilble and covered Beginning of May. Does this apply to him?

Do you think he was considered "ENROLLED" or treated as Enrolled In before May 1, 2014?

Because it says you had coverage gap at beginning of the 2014 BUT were EITHER enrolled in or were treated as having enrolled in.....

Just want to be clear here. Thanks.

[TaxGuyBill]

Yeah, it seems weird why it's expanded to non-Marketplace coverage, but that is how the instructions read.


I'm not quite sure what your question is, but if he had insurance on May 1st, he was "enrolled in" coverage outside the Marketplace on May 1st. which would qualify for the exemption.