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Lev
Lev, Tax Advisor
Category: Tax
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Experience:  Taxes, Immigration, Labor Relations
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My household income is below 138% of the federal poverty

Customer Question

My household income is below 138% of the federal poverty line and I live in a state (Florida) that did not expand Medicaid. I understand I can file Form 8965 with my tax return marking code G in Part III - do I have to have an exemption letter from the Marketplace to do this?
Submitted: 9 months ago.
Category: Tax
Expert:  Lev replied 9 months ago.

There is a separate set of Marketplace exemption - these are different.
If you are using general exemption - you do not need any letter from teh Marketplace and may claim it on your tax return.
That exemption claimed directly on the tax return.

Expert:  Lev replied 9 months ago.

Federal Poverty Levels (which are also called Federal Poverty Guidelines, Federal Poverty Line, or simply FPL) are used to see if you qualify for cost assistance when buying insurance through the State or Federal Health Insurance Marketplace.

Federal Poverty Levels are also used to help determine Medicaid and CHIP eligibility and to help determine eligibility for a number of other non-healthcare related assistance programs (see full list and more details on the guidelines below).

•If you make between 100% – 400% of the Federal Poverty Level you may qualify for premium tax credits on the Health Insurance Marketplace.
•If you make less than 138% of the Federal Poverty Level and your state expanded Medicaid, you may qualify for Medicaid or CHIP. (Note: Medicaid eligibility is effectively 138%, not 133%. Also, CHIP eligibility may be considerably higher for children and parents, usually scaling down as children get older.)

Regarding an exemption to be claimed on form 8965
- IF
Your household income is below 138 percent of the federal poverty line for your family size and at any time during the year you reside in a state that does not participate in Medicaid expansion under the Affordable Care Act.
That exemption is directly reported on form 8965.

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