If all individuals in the tax household were covered for the entire year, enter a 1 in “1=entire household covered for all months”. No penalty will be calculated. 

If no individuals in the tax household were covered for any portion of the year, enter a 2 for “no months” in this field. The Shared Responsibility Payment Worksheet will be completed to determine any applicable shared responsibility payment penalty on this return. If the individual was covered for all months of the year, enter a 1 in “1=all months”.  If the individual was covered for only part of the year, enter a 1 in the applicable month fields.

If only part of the tax household was covered for some or all months, enter the members of the tax household that had any coverage throughout the tax year.  In the First name field, select the covered taxpayer, spouse or dependent from the drop down list. This list includes all persons present in the Client and Dependent Information screens. Once a selection is made, the Last name and ID Number fields will be automatically populated with the relevant information. Only members of the tax household entered here whose names and ID numbers exactly match that entered in Client or Dependent Information screens will be used on Form 8965 and the Shared Payment Responsibility Worksheet. Those persons not matching a member of the tax household as entered in Client and Dependent Information will be ignored.

The November and December entries for the prior year are required for the program to automatically compute the Short Coverage Gap (code “B”). To qualify for this exemption, the short coverage gap can’t be more than 2 months. If the gap includes January of the current year, you must look back to the prior year for coverage in November and/or December to determine if the gap is 2 months or less in length.