Does anyone know how to claim exemption 8965 if one lives in an area with only one carrier. Thought was it would go in part 3 but can't find the proper code.

Forum|Forum|6 years ago
December 7, 2019
5 replies
10 views

Don't want to mess it up but I think they forgot to add code for new jobs act exclusion.

ProSeries Professional

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Best answer by TaxGuyBill

Living in an area with only one carrier does not waive the penalty.

Living in an area with only one carrier AND "the resulting lack of choice has precluded them from obtaining coverage" can waive the penalty. In other words, they need to show that the one carrier was not suitable for their situation (such as their current doctors were not "in network").

If that applies, use exemption code "G".

T

TaxGuyBillAnswer

Living in an area with only one carrier does not waive the penalty.

Living in an area with only one carrier AND "the resulting lack of choice has precluded them from obtaining coverage" can waive the penalty. In other words, they need to show that the one carrier was not suitable for their situation (such as their current doctors were not "in network").

If that applies, use exemption code "G".

A

AllinThisTogetherAuthor

Level 2

Logic states that code G would be the best. I just haven't found anything that states any rules past living in an area with only one carrier. We all know all tax law has the exceptions to the exceptions. I just find lack of information from IRS or many other places on this exception. It is a great "loophole" for many but without much clarification let the notices and court cases line up. If you have anything can you share please. I appreciate your prior response/help.

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