Yet another insurance penalty question

[permathought 4]

Here's yet another ACA/Obamacare tax penalty question:

 

My wife, two kids and myself came to the states in September to visit my parents.  However, after a month we realized we needed to stay to help them out in many different ways. My wife entered on a B1/B2 and next week we're sending in her AOS packet.  We all lived outside of the country from January till September so I know we qualify for exemption C.  My kids did get on Medicaid/CHIP in December so they are covered.  I started working in November and won't have coverage till February of this year so I know that I will face a penalty (either 1 month or 3 months). However, my big question is if my wife would face a penalty since she was here under a tourist visa and has not yet applied for AOS?   If she is exempt, what exemption would she qualify for?  She has an ITIN and we have jointly filed for the past three years and have always used exemption C for being out of country.  But I'm not so sure this time. Anybody had experience with this before?

[Suss&Camm 2,213]

2 hours ago, permathought said:

Here's yet another ACA/Obamacare tax penalty question:

 

My wife, two kids and myself came to the states in September to visit my parents.  However, after a month we realized we needed to stay to help them out in many different ways. My wife entered on a B1/B2 and next week we're sending in her AOS packet.  We all lived outside of the country from January till September so I know we qualify for exemption C.  My kids did get on Medicaid/CHIP in December so they are covered.  I started working in November and won't have coverage till February of this year so I know that I will face a penalty (either 1 month or 3 months). However, my big question is if my wife would face a penalty since she was here under a tourist visa and has not yet applied for AOS?   If she is exempt, what exemption would she qualify for?  She has an ITIN and we have jointly filed for the past three years and have always used exemption C for being out of country.  But I'm not so sure this time. Anybody had experience with this before?

 

First, the penalty will be 3 months, since any time 3 months or longer is not considered a short coverage gap.

Second, on the following site http://obamacarefacts.com/obamacare-immigrants/ you can read this:

 

Who is Eligible for the Marketplace?

Most people in the following groups are eligible for coverage through the Health Insurance Marketplace:

U.S. citizens

U.S. nationals

Lawfully present immigrants

 

How is “Live in the United States” Defined?

If you’re considered a “resident” of the United States for tax purposes, you’re eligible to use the Marketplace.

What Does Lawfully Present Mean?

The term “lawfully present” includes immigrants who have:

“Qualified non-citizen” immigration status without a waiting period (see details below)

Humanitarian statuses or circumstances (including Temporary Protected Status, Special Juvenile Status, asylum applicants, Convention Against Torture, victims of trafficking)

Valid non-immigrant visas

Legal status conferred by other laws (temporary resident status, LIFE Act, Family Unity individuals) See a full list of eligible immigration statuses eligible for Marketplace coverage.

 

Since the underlined sentences say that your wife is lawfully present from the day she entered and further you have filed taxes together, since she is your wife, she is a resident for tax purposes, that means that she qualifies for the marketplace and that the same exemption rules would apply for her as for you.