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.

[AllinThisTogether]

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

[TaxGuyBill · Accepted solution]

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".

[AllinThisTogether]

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.  

[TaxGuyBill]

Code "G" is for Hardships, and this was added to the list of Hardships:
https://www.cms.gov/CCIIO/Resources/Regulations-and-Guidance/Downloads/2018-Hardship-Exemption-Guida...

[rbynaker]

Okay, I'll start the fake news/rumors.  My guess, since the President couldn't get the ACA dismantled through Congress, he found a workaround by having HHS exercise their considerable power to grant hardships.  They just made a blanket decision that all hardships now can be claimed on a tax return (as opposed to the previous system where many hardships had to be applied for and approved).  And I would guess that the IRS has been directed to accept any hardships that are claimed on returns, without examination. /rant

[TaxGuyBill]

Rick - yep.

Here is the stuff about being able to claim Hardships on the tax returns:
https://www.cms.gov/CCIIO/Resources/Regulations-and-Guidance/Downloads/Authority-to-Grant-HS-Exempti...
https://www.irs.gov/pub/irs-drop/n-19-05.pdf