What is the Short Gap Exemption? The Exemption for not having Obamacare

by | Jul 12, 2016 | Uncategorized

Amy-Kelley-poster

I have gone over several different exemptions for not having ObamaCare on other blogs.  This one is called short gap exemption.

Here is what you need to know about this exemption:

Anyone with a gap in health coverage of no more than 2 consecutive months can claim this exemption.

If anyone else on your tax return qualifies, you can claim this exemption for them too when you file your taxes.

  • You’re considered covered any month you had health insurance, for even 1 day. Example: You didn’t have coverage from March 2 to June 15. Your coverage gap was 2 months – April and May. You qualify for the exemption.
  • If your gap was 3 months or more, you can’t claim this exemption for any of those months. Example: You didn’t have coverage any day in April, May, or June. You can’t claim this exemption for any of those months.
  • If your coverage gap crosses calendar years, the months without coverage of the second tax year aren’t counted for the exemption for the first tax year. But the uncovered months from the first year are counted for the exemption for the second tax year. Example: Let’s say you didn’t have qualifying coverage November 2015, December 2015, and January 2016. You’re eligible for the short gap exemption for 2015. But for the 2016 tax year, you’re not eligible for the short gap exemption for January 2016 because you didn’t have coverage for three consecutive months – from November 2015 through January 2016.
  • If you had 2 or more gaps in coverage during the year you can claim this exemption only for the months of your first coverage gap. This is true even if both gaps are less than 3 months. Example: You didn’t have coverage any day in May or any day in November or December. You can claim this exemption only for May.

Do this first: Check your records to make sure you were uncovered for only 1 or 2 months. Do the same for anyone else on your tax return you want to claim this exemption for.

When you file your tax return, you can claim this exemption when you file your 2016 federal income taxes. Most people file their taxes for 2016 by April of 2017.