Healthcare & self-employed question

[nwtaxlady]

Clients MFJ have a small business. They are the only 2 in the household. Their only income is from their Sch C income with a profit of $10,500. Their AGI is about $11,000. They have NO health coverage. My software program has (on it's own) has produced a Form 8965. And the only thing on that form is in Part II.
7a. Are you claiming an exemption because your household income is below the filing threshold? and is marked YES.

7b. Are you claiming a hardship exemption because your gross income is below the filing threshold? and is marked NO.


Is this correct? Or do I need to go further?

Keep in mind they are required to file due to the self employment tax!

[TaxprepP]

I don't think you would need to do anything else. The software I use does the same, auto matic coverage and fills form, if income is below filing threshold.

[Kram BergGold]

Why yes and no

The first question is answered "yes" which makes sense. I think the second is "no" because a self employed person is required to file if they have gross income of $400 or more.

[TaxGuyBill]

Their only income is from their Sch C income with a profit of $10,500. Their AGI is about $11,000.

How is their AGI higher than their "only income"?


The definition of "Household Income" is a bit different than "Gross Income". Gross Income is defined on the bottom of Page 6 of the 8965 Instructions.

http://www.irs.gov/pub/irs-pdf/i8965.pdf#page=6

Anyways, I agree with the others and you don't need to do anything else.

[nwtaxlady]

SCH C income plus...

The AGI is more because he sold 2 pieces of equipment so there is a small gain coming from the Form 4797. Sorry I didn't make that clear.