man and daughter went w/o insurance, he says july, aug, sept. Is that less than 3 months, or should the exemption say without for 2 months? He was off work, collecting unemployment, when work started back up, his insurance kicked in again.
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It depends. The Internal Revenue Code says less than 3 months, BUT, it measures the 3 months as of the last day of that month. IRS Regs say a month of insurance is any month in which at least one day of that month, there was insurance. So, you have to look at the last day of the month and see whether any day of that month, there was insurance. If there was, that last day of the month had insurance.
So for example, lets say he lost his insurance on July 2nd, meaning he had insurance on July 1. July 31 is considered to be the last day of a month in which he had insurance. Then no insurance in August or September. Then he gets insurance On October 31st. October 31st is considered the last day of a month in which he had insurance. So only August 31 and September 30 are last days of months in which there was no insurance, which is less than 3 months, even though the actual time period for no insurance was 3 months and 29 days.
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