State Medicaid, Do I Owe Tax Return Penalty?
I was covered all of 2014 under the Texas Women’s Health Program under Medicaid HHSC. I made $14431.67 for the year. I have one dependent, my daughter DOB 2/5/1997. My daughter has Medicaid and has been covered for all of 2014. She worked during 2014 and made $6325 or $6325 AGI.
I am the Head of Household in my house, and it is just the 2 of us in our home.
Am I exempt from the Obamacare tax penalty since I was covered under the Texas Women’s Health Program?
I am doing my taxes right now, and not sure whether or not I should claim that I had insurance for the entire year for myself. My daughter was covered under Medicaid all 12 months.
Thanks!
Answer
In 2014, even if you only had limited benefit Medicaid, you are considered covered. You may, however, have to use form 8965 to claim exemptions for limited benefit Medicaid.
Moving forward, you'll want to make sure that your state Medicaid program counts as "minimum essential coverage". In general if you live in a state where your legislators rejected Medicaid expansion, and you are an adult, you may be on a limited benefit Medicaid program. Generally, CHIP (any children's Medicaid coverage, regardless of it's name in your state) is minimum essential coverage.
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My husband lost his job and subsequently our health insurance in August 2017. We immediately applied for Medicaid to be covered by our state’s Family Care plan with our daughters, (who were already on the state’s All Kids Medicaid plan). We recently received a letter stating that the State of IL is backed up, but that we should have an answer of approval no later than Feb 2019. Will we be penalized?