For my next dumb question - ACA
 

So, my good lady joined me in the US in February last year and was added to my employer's health insurance plan effective April 1 (this isn't a joke...) My 1095 form correctly shows her as missing 3 consecutive months from last year although she was only in the country for approximately 1.5 of these months.

As we will be electing to file as full year residents, will she have to pay the penalty for not having continuous health care coverage for not less than 3 consecutive months, or does she still get an exemption for not living in the US until February?

I've seen conflicting discussion over this and want to be fully prepared when we talk to a tax professional.

Re: For my next dumb question - ACA
 

There is an exemption for a short gap in coverage (up to two months). If you are planning on talking to a tax professional I'm sure that would be the best person to talk to though.

Re: For my next dumb question - ACA
 

I'm gonna go out on a limb here and say it's unlikely they can impose fines for lack of health insurance on anyone who wasn't actually resident in the country.

https://www.healthcare.gov/exemption...resident-alien

Re: For my next dumb question - ACA
 

obama meant well, but fining people for not taking out medical insurance is a massive government overreach.

Re: For my next dumb question - ACA
 

There are exemptions for people that meet the bonafide residency test among others.

Probably best ask your tax professional if you are going to see one, otherwise software like TurboTax also handles the exemptions.

Re: For my next dumb question - ACA
 

If you insist that insurance companies cover pre-existing conditions, how else are you going to prevent people from only getting insurance when they need to use it and totally bankrupting the system?

Re: For my next dumb question - ACA
 

Form 8965, Health Coverage Exemptions

Use this form if you have a Marketplace-granted coverage exemption or you are claiming a coverage exemption on your return.

Re: For my next dumb question - ACA
 

You need healthy people in the health insurance system to pay for those who need healthcare. It's the same with car insurance which is also mandatory - that is, you need a certain number of drivers who are not going to claim in order to pay for those who will claim.