Form 886-H-DEP, also known as the Healthcare Coverage Exemptions for Certain Dependants, is typically required to be completed when certain circumstances apply. Here are some instances when you may need to fill out Form 886-H-DEP:
1. Dependents without healthcare coverage: If you have dependents who didn't have health insurance coverage for any part of the year and want to claim a coverage exemption for them, you may need to complete Form 886-H-DEP.
2. Applying for a coverage exemption: When you want to claim an exemption from the individual shared responsibility provision for your dependents due to specific reasons, such as financial hardship or unaffordability, you should consider filing Form 886-H-DEP.
3. Dependents with coverage gaps: If your dependents experienced gaps in health insurance coverage for any period during the year and you want to apply for an exemption based on that, Form 886-H-DEP can help you document those gaps.
4. Multiple exemptions for different dependents: In situations where you have multiple dependents, and each one qualifies for a different healthcare coverage exemption, you'll need to complete Form 886-H-DEP separately for each dependent to claim their respective exemptions.
5. Provisional coverage exemptions: In some cases, dependents may qualify for a provisional coverage exemption when they had a short coverage gap or experienced a change in circumstances. To apply for a provisional coverage exemption, you may need to use Form 886-H-DEP.
Remember, it's crucial to review the instructions provided with Form 886-H-DEP and consult with a tax professional or the IRS if you are unsure about the specific circumstances that require the completion of this form.