Instructions For Form 8965 - Health Coverage Exemptions

Example—Gaps in coverage for partial months. Fred

present for purposes of this coverage exemption, visit

has minimum essential coverage except for the period April 5

through July 25. An individual is treated as having coverage for

The individual is a nonresident alien, including (1) a du-

any month in which he or she has coverage for at least 1 day of

al-status alien in the first year of U.S. residency and (2) a nonres-

the month. As a result, Fred has minimum essential coverage in

ident alien or dual-status alien who elects to file a joint return

April and July and is eligible for the short coverage gap exemp-

with a U.S. spouse. You can claim the coverage exemption for

tion for May and June.

the entire year. This exemption doesn't apply if you are a nonres-

ident alien for 2017, but met certain presence requirements and

Continuous coverage gap straddles more than one taxa-

elected to be treated as a U.S. resident. For more information,

ble year. If you don’t have minimum essential coverage for a

see Pub. 519.

continuous period that begins in one taxable year and ends in

If you meet one of these conditions, you qualify for this ex-

the next, for purposes of applying the short coverage gap rules

emption even if you have a social security number (SSN). To

to the first taxable year, the months in the second taxable year

claim this coverage exemption, enter code “C” in Part III, column

included in the continuous period aren’t counted. For purposes

(c), and identify the months to which the exemption applies as

of applying the short coverage gap rules to the second year, the

described under

Columns (d) - (p)—Calendar

Months, later.

months in the first taxable year are counted.

Members of a health care sharing ministry (code “D”). You

Example—Continuous coverage gap straddles more

can claim a coverage exemption for yourself or another member

than one taxable year. Fran, an unmarried taxpayer with no

of your tax household for any month in which the individual was

dependents, has minimum essential coverage from January 1

a member of a health care sharing ministry for at least 1 day in

through October 31, 2017. Fran is without coverage until Febru-

the month. Enter code “D” in Part III, column (c), and identify the

ary 1, 2018. On her tax return for 2017, November and Decem-

months to which the coverage exemption applies as described

ber 2017 are treated as a short coverage gap. On her 2018 tax

under

Columns (d) - (p)—Calendar

Months, later.

return, November and December 2017 are included in the con-

In general, a health care sharing ministry is a tax-exempt or-

tinuous period that includes January 2018. The continuous peri-

ganization whose members share a common set of ethical or re-

od for 2018 isn’t less than 3 months, and therefore January isn’t

ligious beliefs and share medical expenses in accordance with

part of a short coverage gap.

those beliefs, even after a member develops a medical condi-

To claim this coverage exemption, enter code “B” in Part III,

tion. For you to qualify for this exemption, the health care sharing

column (c), and identify the months to which the exemption ap-

ministry (or a predecessor) must have been in existence and

plies as described under

Columns (d) - (p)—Calendar

Months,

sharing medical expenses continuously and without interruption

later.

since December 31, 1999. An individual who is unsure whether

Citizens living abroad and certain noncitizens (code “C”).

a ministry meets the requirements should contact the ministry for

You can claim a coverage exemption for yourself or another

further information.

member of your tax household to which any of the following ap-

Members of Indian tribes or individuals otherwise eligible

ply.

for services from an Indian health care provider (code “E”).

The individual is a U.S. citizen or a resident alien who is

You can claim a coverage exemption for yourself or another

physically present in a foreign country (or countries) for at least

member of your tax household for any month in which the indi-

330 full days during any period of 12 consecutive months. You

vidual was a member of a Federally-recognized Indian tribe, in-

can claim the coverage exemption for any month during your tax

cluding an Alaska Native Claims Settlement Act (ANCSA) Cor-

year that is included in the 12-month period. For more informa-

poration Shareholder (regional or village), for at least 1 day in the

tion, see Physical Presence Test in Pub. 54.

month. The

list of Federally-recognized Indian tribes

is available

The individual is a U.S. citizen who is a bona fide resident

at https:// The list of village

of a foreign country (or countries) for an uninterrupted period

or regional corporations formed under ANCSA is available at

which includes the entire tax year. You can claim the coverage

dnr.alaska.gov/mlw/trails/17b/corpindex.cfm. You can also claim

exemption for the entire year. For more information, see Bona

a coverage exemption for yourself or another member of your

Fide Residence Test in Pub. 54.

tax household for any month in which the individual was eligible

The individual is a resident alien who is a citizen or national

for services through an Indian health care provider or through

of a foreign country with which the U.S. has an income tax treaty

the Indian Health Service.

with a nondiscrimination clause and who is a bona fide resident

To claim either of these coverage exemptions, enter code “E”

of a foreign country for an uninterrupted period that includes the

in Part III, column (c), and identify the months to which the ex-

entire tax year. You can claim the coverage exemption for the

emption applies as described under

Columns (d) - (p)—Calen-

entire year. For more information, see Bona Fide Residence

dar

Months, later.

Test in Pub. 54.

The individual is a bona fide resident of a U.S. territory.

If you or another member of your tax household was a

You can claim the coverage exemption for the entire year.

member of a Federally-recognized Indian tribe or other-

TIP

The individual isn’t lawfully present in the U.S. and isn’t a

wise eligible for services from an Indian health care

U.S citizen or U.S. national. For this purpose, an immigrant with

provider, and was granted a lifetime coverage exemption by the

Deferred Action for Childhood Arrivals (DACA) status isn’t con-

Marketplace in 2014, 2015, or 2016, and that individual’s status

sidered lawfully present and therefore qualifies for this exemp-

hasn’t changed, see the instructions for

Part

I, earlier, to claim

tion. For more information about who is treated as lawfully

the exemption.

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Instructions For Form 8965 - Health Coverage Exemptions - 2016 Page 12

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