How do i show lack of adequate coverage options on form 8965. Market places says they do not issue exemption certificate for lack of adequate coverage options.

[accountant1354]

How do you put this on the 8965 without an exemption certificate number and e-file the return?

[TaxGuyBill · Accepted solution]

Go to the Part III of the 8965 and select exemption code "G" for the Hardship.

[The-Tax-Lady]

Will that work, if there isn't an economic hardship, which is not really clear, or does that just get it e-filed and maybe questioned later?

[TaxGuyBill]

They allowed a new hardship for people who live in areas with limited Marketplace options:
https://www.cms.gov/CCIIO/Resources/Regulations-and-Guidance/Downloads/2018-Hardship-Exemption-Guida...

For 2018, they also allow/force us to waive the penalty for qualified Hardships on the tax return (so they make US determine if they qualify, rather than having the Marketplace tell them if they qualify).
https://www.cms.gov/CCIIO/Resources/Regulations-and-Guidance/Downloads/Authority-to-Grant-HS-Exempti...


Yes, like anything else we put on the tax return, the IRS can always question that taxpayer about it later.

[The-Tax-Lady]

See above answer.