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Concerning the shared responsibility payment having health…

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Concerning the shared responsibility payment...
Concerning the shared responsibility payment for not having health insurance. If my wife is enrolled in the lowest cost bronze plan for $500 per month and I go without insurance but the lowest cost bronze plan would be $686 for myself. When calculating the exemption can I still add both premiums together and multiply our combined income by .0805 to see if I’m exempt from paying the penalty?
Submitted: 2 years ago.Category: Tax
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1/25/2016
Tax Professional: Lev, Tax Advisor replied 2 years ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,858
Experience: Taxes, Immigration, Labor Relations
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When you calculate possible exemption - it is calculated separately for each person - but you will need to use household income and number of persons in your household.

Thus if you want to verify if YOU are eligible foe the exemption - you may not use health insurance premiums paid for your spouse.

Sorry if you expected differently.

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Customer reply replied 2 years ago
If we were both on the same policy then we could use the combined premium, correct?
Tax Professional: Lev, Tax Advisor replied 2 years ago

In this case - the premium would be apportioned to each of you.
However "use the combined premium" would depends on the purpose...

If you meant to calculate possible exemption - as I mentioned - - it is calculated separately for each person - and the premium paid for YOUR policy would be used to determine your exemption.

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Customer reply replied 2 years ago
the penalty is based on MAGI or Taxable Income
Tax Professional: Lev, Tax Advisor replied 2 years ago

The penalty is calculated based on MAGI,

but that is based on your income in each month - so if your income is not evenly distributed over teh year - you might be exempted for some months.

For any month during the year that you or any of your family members don’t have minimum essential coverage and don’t qualify for a coverage exemption, you are required to make an individual shared responsibility payment when you file your tax return.

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Tax Professional: Lev, Tax Advisor replied 2 years ago

In general, the annual payment amount is the greater of a percentage of your household income or a flat dollar amount, but is capped at the national average premium for a bronze level health plan available through the Marketplace.

See here

https://www.irs.gov/Affordable-Care-Act/Individuals-and-Families/ACA-Individual-Shared-Responsibility-Provision-Calculating-the-Payment

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If you still have any doubts, need clarification - please be sure to ask.
I am here to help you will all tax related issues.

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