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No Health Ins Coverage, NO Shared Resp Penalty Calculated

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    No Health Ins Coverage, NO Shared Resp Penalty Calculated

    I know there is another very similar thread going on, but I didn't want to confuse the issue by combining the two, so please bear with this new thread.
    I have a Massachusetts client that did not get any insurance all year. She only made about $15.5K all year. She could have gotten Mass Health for nothing, but still didn't (LAZY!!). So there was no excuse for this. Anyway, I completed the federal and state forms for the health insurance part. I completed the Health Insurance Worksheet and stated no insurance and none purchased through the Marketplace all year. I checked off the box for the whole year. So I went to calculate the Shared Resp. Payment worksheet, but was not able to check off any months on the form unless I overrode the boxes which I didn't want to do. When I did override the monthly boxes to check them off (just to see what would come out) a penalty of about $111 came out. I don't know what I am doing wrong (if anything). I thought she would have a penalty. Would it be because of her low income that I don't have to complete that penalty? I am getting more confused on what is going on. When I go through the review when doing the e-filing on the return nothing appears to be wrong. I also completed the Mass return with no penalty calculated. It did state because of her income. I use TaxAct. Does anyone having any thoughts on whether I am doing something wrong? Thanks for any responses!

    #2
    Claimed as a dependent maybe? They wouldn't be subject to a penalty in that case (though whoever claims them could be).

    I plugged in $15,500 W-2 single filing status no dependents and get a penalty of $325 in my software.

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      #3
      It seems like it should have a penalty to me (unless it is a Married Filing Jointly return) for $325 (full year).

      Is there a Form 8965? What is on it?

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        #4
        No Form 8965

        There is no form 8965 because there is no exemption that she would fit into.

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          #5
          The penalty is not showing up on Line 61? (Line 38 of 1040A, Line 11 of 1040EZ)?

          It could be a software glitch.

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            #6
            Nothing on Line 16

            Nope, nothing shows on line 61. I thought the penalty would show there too. Is there a worksheet that shows the penalty that populates to the line 61 on your form 1040 line 61?

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              #7
              Have the Answer

              Now I get my error. I was checking the full year box on the health insurance worksheet. I did check off the 2 boxes at the top, but also checked the full year box below which is only to be checked off if she DOES have insurance. Now I get the penalty of $325 which makes sense. Thanks to everyone for your postings!!!

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