Remind me About the ACA coverage box...

[Chowdahead]

If the filer had no coverage all year but qualifies for an exemption, yet dependents had coverage all year... do we file the exemption for the filer on 8965, yet also check the box on 1040 Pg.2 indicating Full Year Coverage for the dependents?

Or do we leave the box unchecked and the IRS will assume that anyone else on the return who isn't listed for an exemption had full year coverage?

[RitaB]

3 minutes ago, Chowdahead said:

If the filer had no coverage all year but qualifies for an exemption, yet dependents had coverage all year... do we file the exemption for the filer on 8965, yet also check the box on 1040 Pg.2 indicating Full Year Coverage for the dependents?

Or do we leave the box unchecked and the IRS will assume that anyone else on the return who isn't listed for an exemption had full year coverage?

Hahaha love the title, and I'm picking door # 2, as the assertion on the check box means the entire household had coverage all year, not that the entire household was in the clear all year.  Of course, well meaning people wind up in the clinker all the time.

[Pacun]

If I am not mistaken, we have to be very careful when we check the box on form 1040. As RitaB said it means "LEAVE US ALONE WE ALL HAD INSURANCE ALL YEAR". It also means "WE ALL HAD HEALTH INSURANCE ALL YEAR... END OF CONVERSATION". So the software will honor the second quote and whatever you do inside form 8965 will be ignored. When the IRS checks the return in 2 years, our clients will show that didn't have any health insurance and will get a bill and/or a letter.

[Jack from Ohio]

56 minutes ago, Pacun said:

If I am not mistaken, we have to be very careful when we check the box on form 1040. As RitaB said it means "LEAVE US ALONE WE ALL HAD INSURANCE ALL YEAR". It also means "WE ALL HAD HEALTH INSURANCE ALL YEAR... END OF CONVERSATION". So the software will honor the second quote and whatever you do inside form 8965 will be ignored. When the IRS checks the return in 2 years, our clients will show that didn't have any health insurance and will get a bill and/or a letter.

With all the chaos surrounding Forms 1095, do you REALLY think the IRS will be willing, or able, to crosscheck this information?  Why do you think they keep making extension of time to file for all the parties involved, and said that if the taxpayer gets a 1095 that does not agree with what was filed, amendment is not required?

There are a couple of old military terms that fit the ACA/1095 debacle.  Since this is a public site, I will not use them.

[jklcpa]

On 1/21/2016 at 11:48 AM, Chowdahead said:

If the filer had no coverage all year but qualifies for an exemption, yet dependents had coverage all year... do we file the exemption for the filer on 8965, yet also check the box on 1040 Pg.2 indicating Full Year Coverage for the dependents?

Or do we leave the box unchecked and the IRS will assume that anyone else on the return who isn't listed for an exemption had full year coverage?

 

In the scenario you describe, the box 61 would be left blank on the 1040.  This is explained very succinctly in the 1040 instructions for line 61 where it says the following (bold is mine for emphasis):

I

If you had qualifying health care coverage (called minimum essential coverage) for every month of 2015 for yourself, your spouse (if filing jointly), and anyone you can or do claim as a dependent, check the box on this line and leave the entry space blank.

 

Otherwise, do not check the box on this line. If you, your spouse (if filing jointly), or someone you can or do claim as a dependent didn’t have coverage for each month of 2015 you must either claim a coverage exemption on Form 8965 or report a shared responsibility payment on line 61.

 

 

[jklcpa]

 

Moderator note:  Original question has been answered. O/T, derailing posts have been hidden.