BulldogTom Posted April 24, 2016 Report Share Posted April 24, 2016 Client is covered at work, carries his spouse on the coverage. Client's kids were on state program for insurance. I have no idea how they got it, because they have 6 figure income for the last three years, but they were on a state program. In Oct, they got kicked off by the state. The 1095 comes in from the state showing the kids were covered for 10 months Jan - Oct. Clients employer 1095 shows Hubby & Wife covered Jan-Dec. So I ask if he got the kids on the work insurance and the husband says they would not pick his kids up until open enrollment in the spring. But wife says they got on sooner. She thought they were covered last year. But his 1095 from his employer does not say that. So, I calculated the penalty because I think they did not have a short coverage gap. Did I make a mistake? Can you not be covered the last 2 months of the year and ignore what is going to happen (or what you think is going to happen) in the next year? Should I have marked the short coverage gap exemption? Tom Newark, CA Quote Link to comment Share on other sites More sharing options...
grmy2h Posted April 24, 2016 Report Share Posted April 24, 2016 As long as the coverage gap was less than 3 months in 2015 there would not be a penalty for 2015. Nov and Dec will be considered in 2016 if there is no insurance for Jan 2016. Quote Link to comment Share on other sites More sharing options...
jklcpa Posted April 25, 2016 Report Share Posted April 25, 2016 I agree. You should have claimed the short gap exemption for the 2015 year. Then, those months are taken into account in 2016 so that the short gap exemption can't be claimed again for the spring period because the consecutive months of lack of coverage at that point in 2016 does exceed 2 months. 1 Quote Link to comment Share on other sites More sharing options...
RitaB Posted April 25, 2016 Report Share Posted April 25, 2016 Agree, your client had a short gap in coverage for 2015. I just noticed last week that I made the same mistake for a client in 2014. Nobody caught it in 2014, but I'd say it's more likely to be caught now. See # 22 https://www.irs.gov/Affordable-Care-Act/Individuals-and-Families/Questions-and-Answers-on-the-Individual-Shared-Responsibility-Provision Quote Link to comment Share on other sites More sharing options...
joanmcq Posted April 29, 2016 Report Share Posted April 29, 2016 It's not a short coverage gap if the kids didn't have coverage in January 2016. Quote Link to comment Share on other sites More sharing options...
RitaB Posted April 29, 2016 Report Share Posted April 29, 2016 1 hour ago, joanmcq said: It's not a short coverage gap if the kids didn't have coverage in January 2016. On 4/25/2016 at 10:00 AM, RitaB said: See # 22 https://www.irs.gov/Affordable-Care-Act/Individuals-and-Families/Questions-and-Answers-on-the-Individual-Shared-Responsibility-Provision It is a short gap for 2015, but not for 2016. 1 Quote Link to comment Share on other sites More sharing options...
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