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Employee
March 4, 2019
Question

Health Insurance Deduction - Turbo Tax confusion (feedback)

  • March 4, 2019
  • 1 reply
  • 0 views

Hello,

 

I came to USA in 2013 on F-1 visa. Until 07/2018, i was on F-1 visa (OPT), however my status for tax purposes changed from non-resident alien to resident alien in 2018. I got H-1b visa in 07/2018.

 

I did not have health insurance coverage in 2018 until 08/2018. So do i have to pay the tax penalty for not having any coverage for some part of the year ? If yes, is there a way i can reduce this penalty by claiming exemption under Form 8965 ? Please let me know

 

Thank you. 

    1 reply

    Employee
    March 6, 2019

    Here are links to the instructions for Form 8965 and frequently asked questions to the IRS.  Please direct your attention to Form 8965 instructions Page 3 and Exemption Code C. Non-resident aliens are not required to have the health insurance and would be exempt .  The code-C exemption applies to non-resident aliens, and Code-C exemption also applies to a "dual-status alien in the first year of U.S residency,"

      https://www.irs.gov/pub/irs-pdf/i8965.pdf

     

    Specifically, look at question number 8 at this link.

      https://www.irs.gov/affordable-care-act/individuals-and-families/questions-and-answers-on-the-individual-shared-responsibility-provision