Form 8965

[Christian]

I have a client with a wife and four children whose income is well below the filing threshold. He was assigned exemption numbers by the federal marketplace for himself, his wife, and two of his kids. The other two children are covered by the CHIP program. I filled in Form 8965 showing the four covered by their exemptions thinking it unnecessary to add the other two there being no listed exemptions for government coverage in part two. ATX added $975 in penalty fees so I went back and checked the hardship exemption box which eliminated the penalties. However, I am wondering if this is correct. Any feedback will be appreciated.

[jklcpa]

CHIP coverage is considered MEC.  ATX should have an area of input to indicate that these 2 children were covered, not that they have an exemption. 

[Tax Prep by Deb]

17 hours ago, Christian said:

I have a client with a wife and four children whose income is well below the filing threshold. He was assigned exemption numbers by the federal marketplace for himself, his wife, and two of his kids. The other two children are covered by the CHIP program. I filled in Form 8965 showing the four covered by their exemptions thinking it unnecessary to add the other two there being no listed exemptions for government coverage in part two. ATX added $975 in penalty fees so I went back and checked the hardship exemption box which eliminated the penalties. However, I am wondering if this is correct. Any feedback will be appreciated.

Go back and re-answer the SRP questions especially #3  I have missed this several times, but if anyone had coverage for even one month the answer to this question should be yes, then it should calculate correctly.