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Tax Law (Questions About Taxes)/Minimum Essential Coverage

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Question
Hello,

Thank you for your time.  I have a question regarding minimum essential coverage.  I did not have minimum essential coverage in 2014 from January to April.  I received no income during that time.  In mid april I was employed.  In August, the earliest I could enroll in the employer group health coverage.  

My question is in the IRS eyes, are there any months that I have to pay a penalty/tax/fee for not having minimum essential covrage?  

Just to recap:  January to April I didn't have minimum essential coverage, as I had no income, I didn't meet the requirement to have it.

May to August, I still didn't have minimum essential coverage, I was employed during that time, but was waiting for enrollment in August for healthcare coverage.

Thank you

Answer
John,

Thanks for your question.

You probably are exempt for Jan - April due do it being unaffordable, possibly longer. You are allowed three months of no coverage, so you may be able to escape a penalty for May - July. That would leave only August.  You need to complete Form 8965 to see if you qualify for an exemption.

Hope this helps.

John Stancil, CPA  

Tax Law (Questions About Taxes)

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John Stancil, CPA

Expertise

I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at www.mybaldcpa.com. I also offer seminars and consultations to churches and clergy on their tax issues at www.churchtaxsolutions.com Also visit my blog, www.thetaxdocspot.com. I am listed on Tax Connections at https://www.taxconnections.com/profile/John-Stancil/12258973 Prepare and file your own taxes at www.1040stancilcpa.com

Experience

I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

Organizations
FICPA, NATP, NCPE Fellowship, Lakeland Business Leaders

Publications
The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

Education/Credentials
DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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