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Darien and Zoey, both 42 in 2016, lived in Colorado for the year and are married

ID: 2567626 • Letter: D

Question

Darien and Zoey, both 42 in 2016, lived in Colorado for the year and are married filing a joint return. In 2016 they had a combined income of $18,300. Neither had health insurance at any time during the year.

a) They can claim the Income Below the Filing Threshold exemption.

b) They can claim the Coverage Considered Unaffordable exemption.

c) They can claim the Resident of a State that Did Not Expand Medicaid exemption.

d) They do not qualify for an exemption and must pay the penalty.

Gil is 21 and currently going to school at a local community college in Colorado. Three years ago he was granted Deferred Action for Childhood Arrivals (DACA) status and was given a social security card with a stamp at the top that says “Valid for work only with DHS authorization”. He is filing single and made $11,160 during the year. Nobody can claim him as a dependent. Gil did not have health coverage for the entire year.

a) He can claim the Income Below the Filing Threshold exemption.

b) He can claim the Unable to Renew Existing Coverage exemption.

c) He can claim the Citizens Living Abroad and Certain Noncitizens exemption.

d) He does not qualify for an exemption and must pay the penalty.

Explanation / Answer

Question 1:

Answer: a

They have joint income of $18,300. This is lower than the exemption limit of $20,700 in the year 2016. Therefore, they can claim the income below such exemption.

Other options are not correct:

b. This is related to health insurance.

c. State C is not in the list for claiming exemption.

d. There is no question of penalty, since one exemption as “a” above is still there.