If you have completed and submitted an application to the Marketplace for a health coverage exemption and are still awaiting approval of your application, you may still be able to file your federal income tax return.

Marketplace granted health coverage exemptions include:

• Hardship Exemptions listed on the HealthCare.gov website
• eligibility for services through an Indian health care provider
• membership in a recognized religious sect whose members object to insurance

To enter a Pending coverage exemption into the TaxAct program, follow the steps below:

1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal
2. Click Health Insurance in the Federal Quick Q&A Topics menu to expand the category and then click Individual coverage exemptions
3. Click New Copy of Form 8965 Part I (Desktop users click Add) to create a new copy of the form or Review to review a form already created for Form 8965, Part I for Marketplace-granted exemptions
4. Using the drop down menu, select the individual to whom the exemption applies.
5. Click the checkbox to indicate Pending exemption application and below indicate the year or months of exempted health coverage.

Note. Later after you have successfully filed your federal income tax return and the Marketplace denies your application for a health coverage exemption, you may need to amend your federal tax return.

According to the HealthCare.gov website After you apply for an exemption, after you submit your exemption application, the Marketplace will review it and determine if you qualify for an exemption from the fee for not having coverage.

The time it takes for the Marketplace to respond depends on how complicated your request is, how complete your application is, and whether you need to submit documentation after you apply. To speed up the process, submit any required documentation with your exemption application. The Marketplace will mail you a notice of the exemption eligibility result.

If you're granted an exemption, the Marketplace notice will include your unique Exemption Certificate Number (ECN). You can enter your ECN into the TaxAct program using the steps above and instead of checking the box to indicate a pending exemption application you would enter in your ECN.