Scenario:

• my mother-in-law lives with me and I'm reporting her as a dependent for 2014
• we moved from a state where she had insurance under Medicaid (she's 64).
• Texas (our new home) denied her medicaid
• Unfortunately, Texas gave her MAP (Medical Assistance Program) and I did not realize that it does *not* qualify under ACA

Consequently, now it looks like I'm on the hook to pay a penalty (since I'm responsible for her).

However, my tax program tells me that there's an exemption under "medicaid ineligibility in non-expanded medicaid states".

But I'm having a hard time understanding if we qualify for that exemption.
There also seems to be two options for that --- by applying on taxes and by applying thru the marketplace.

Consequently, now it looks like I'm on the hook to pay a penalty (since I'm responsible for her).======= a taxpayer is liable for the shared responsibility payment imposed with respect to any individual for a month in a taxable year for which the taxpayer may claim a personal exemption deduction for the individual , the dependent, for that taxable year. So,The ACA says that aslongas you CAN claim her as a dependent, then you are responsible for her health insurance beginning in 2014.

However, my tax program tells me that there's an exemption under "medicaid ineligibility in non-expanded medicaid states". But I'm having a hard time understanding if we qualify for that exemption.There also seems to be two options for that --- by applying on taxes and by applying thru the marketplace.============== to claim an exemption if you’d have qualified for coverage if your state had expanded Medicaidaslongas , then you qualify for a health coverage exemption; if You lived in a state that didn’t expand its Medicaid program under the Affordable Care Act; You must have lived in one of these states at any time in 2014. Your income and household size would have qualified you or your family for Medicaid if the state had expanded coverage. Your yearly income for 2014 must have been below 138% of the federal poverty level. In most U.S. states, that’s about $16,100 for an individual. If you are granted a coverage exemption from the Marketplace, they will send you a notice with your unique Exemption Certificate Number or ECN.