I have a client, he worked for company A from Jan-May, and was covered with health ins. Then he started to work for company B in June. He was covered by company B from Aug- Nov. He got layoff in Dec, so company B did not cover him in Dec. He is still waiting to be called back any day now. I use proseries, it calculate penalty only for Dec. Is that correct? what is exemption code for Dec? Hardship?
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Yes, that is correct.
June and July qualify for the "Short Coverage Gap" (up to two uninsured months, available for the first gap each year).
Was there NO insurance in December? Not even one day? If there weren't ANY insured days in December, that month would be subject to the penalty. If there were ANY insured days, that counts as an 'insured' month.
Nothing in you post indicates December qualifies for any exemption. However, the taxpayer can see if anything applies here:
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