ACA Penalty

[Earl]

Taxpayer claiming dependent child. Child is 40 years old with no income.
With no exceptions taxpayer is liable for 2% penalty. Taxpayer has
insurance but child did not. Are there any exceptions available for the
dependent to not be considered for penalty.

[David1980]

Page 2 of the instructions has exceptions. One might apply?

https://www.irs.gov/pub/irs-dft/i8965--dft.pdf

For example, if they're members of an Indian tribe you could use code E. Resident of a state that did not expand Medicaid up to 138% of federal poverty level code G. Etc.

And you could apply for hardship exemption directly from marketplace.

I always try to understand why they didn't get insurance and go from there. If the insurance was free or nearly free after a premium tax credit it wouldn't make sense that they didn't purchase it from marketplace. Usually they have some reason. The one for resident of a state that did not expand Medicaid seems really common - when they make too little to qualify for any PTC and too much for the state's medicaid program.