My father-in-law’s income is $5000 per year. Is he exempt from the penalty? He is a new Green card holder and currently has travel insurance.
Both, my mother-in-law and father-in-law have Green cards but will be traveling back and forth to India every few months for the next two years until they permanently settle in the US. They have to close up their homes and bank accounts there in order to make the permanent transition to the US. Is it ok that they have travel insurance over the next two years for their intermittent travels here or do they need to have the minimal insurance coverage here? As I said previously, their income here is minimal.
If a person's income is below the tax filing threshold they are exempt, if the cheapest plan costs more than 8% MAGI, they are also exempt.
Federal tax filing thresholds are $10,150 single and $20,300 married an filing jointly.
In your specific case, if someone spends more than 330 days outside the country or has foreign insurance they are exempt. Also depending on their immigration status they may be exempt anyway.