Taxpayer income -$23,322 year. 19,692 wages & 3,630 from unemployment. Covered with insurance from Jan thru Sept. got laid off in Oct. thru the rest of year. With 1,210 a month income, the insurance cost of $244.00 for a plan would be un-affordable for those months and an exception code of A. OR short term gap of 2 months code B. Does that sound right?
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If he did not have insurance in October, it would not be a Short Gap (code B). However, even if he had one day of insurance in October, that would count as an "insured" month.
Is the insurance cost of $244 AFTER the Premium Tax Credit that the taxpayer COULD have received (see next paragraph)? Probably not (unless maybe if the taxpayer is a tobacco user). If not, the "Unaffordable" exemption does not apply either. Also, it is based on the ANNUAL income, not just the uninsured months.
To determine the Unaffordable exemption (assuming no access to employer insurance), you fill out the worksheet on page 11 of the 8965 instructions, then page 10.
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aca exceptions
You are absolutely right on all comments. There should be an exception for any month you are on un-employment. I would call that a heck of a Hardship. a 1099 from un-employment tax department would be support. At $1,000.00 a month suddenly happening, I would be thinking about eating - not ACA. Based on their projected income for the next few month OR even now-it is certainly UNAFFORDABLE. Thoughts??Comment
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At $1210 a month, that would have qualified for Medicaid if he lives in a State that had expanded Medicaid.
If he did not live in a State that has expanded Medicaid, he should have applied to be officially denied. That would qualify for a Hardship exemption (#12).
However, if the taxpayer did not apply for Medicaid, it is his own fault. That is the purpose of the penalty; its purpose is to have taxpayers be responsible for their healthcare expenses. The penalty's official name is the Individual Shared Responsibility Payment.
The taxpayer can check if any Hardships apply, but if not, they owe the penalty.
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aca exceptions
right again. i think AN un-employment period month should be an exception month. Thoughts?? Return is complete. He is ok with it thanksComment
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