# IRS Form 8965-Health Coverage Exemptions



## xali

Hello,
I have a dilemma with the Health Coverage Exemptions form, IRS Form 8965. I qualify for exemption Code C (Citizens Living Abroad) in PART III but I could also check the 'yes' boxes in PART II item 7a ("Are you claiming an exemption because your household income is below the filing threshold?") and item 7b ("Are you claiming a hardship exemption because your gross income is below the filing threshold?"). Question: Is it appropriate to check all that applies or does the Living Abroad exemption take precedence over the others and therefore I should leave PART II blank and only complete PART III?
Thank you!


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## BBCWatcher

Just as a basic question, if you are below the filing threshold, why are you filing a U.S. tax return? To claim one or more refundable tax credits you qualify for, or for some other reason?

To answer your question directly, the instructions for Form 8965 indicate that you should complete Part II if Part II applies to you. (See page 1 of the instructions, upper right column.) I don't see anything in the instructions that indicates you then cannot complete Part III if you wish (and if you qualify), so I would go ahead and also claim reason C in Part III.


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## xali

Thank you. Yes, I'm claiming the Additional Child Tax Credit. I thought the same when I read the instructions but then it seemed counterintuitive that the IRS would be interested in filers claiming more than one exemption when one is all that's needed.


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## BBCWatcher

No, I think it makes perfect sense to all sides if you want to file that way. If the IRS disagrees with one of your claimed coverage exemptions or at least doubts it, they wouldn't have to contact you for clarification if they agree with your other claimed exemption. So you might as well report both/all exemptions as long as the instructions don't object, and as I read the instructions they don't object. As I read the instructions you have to complete Part II in your situation, but Part III then becomes optional if you wish -- but, as I said, I'd go ahead and fill in Part III as well.


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