Avoiding the Obamacare Penalty


IRS – Individual Shared Responsibility Provision – Exemptions: Claiming or Reporting.

There are a myriad of ways to avoid the Obamacare penalty. No better place to go for reliable information but to the enforcer, the IRS.

  • Coverage considered unaffordable
  • Short coverage gap
  • Income below the return filing threshold
  • Citizens living abroad and certain noncitizens
    • must be out of country at least 330 days
  • Members of a health care sharing ministry
  • Members of Indian Tribes
  • Incarceration
  • Members of certain religious sects
  • Aggregate self-only coverage considered unaffordable
  • Gap in coverage the beginning of 2014
  • General Hardship
  • Coverage considered unaffordable based on projected income
  • Determined ineligible for Medicaid in a state that did not expand Medicaid coverage (income dependent)
  • Resident of a state that did not expand Medicaid (Income dependent)
  • Unable to renew existing coverage
  • Gap in CHIP coverage
  • AmeriCorps coverage
  • Limited benefit Medicaid and TRICARE programs that are not minimum essential coverage

Another good source of information is the TurboTax Exemption Check tool.

Details provided at the link.


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