What happened if I do not pay health insurance?
- 2016 tax penalty: the annual individual responsibility payment is the greater of:
○ 2.5% of the taxpayer’s household income that is above the tax return filing threshold for the taxpayer’s filing status, or
○ The taxpayer’s flat dollar amount, which is $ 695 per adult and $347.50 per child, limited to a family maximum of $2,085.
- However the total payment amount is capped at the cost of the national average premium for a Bronze level health plan available through the Marketplaces in 2018
After 2016, the payment is adjusted for inflation.
For every month you do not have a qualified health insurance plan, you must pay 1/12 of your annual tax penalty.
For more information, please visit the Internal Revenue Service (IRS) website.
To see if you qualify for the Federal Subsidy to pay a portion of your health insurance premium for 2018 use this helpful tool.
You need to know your annual modified gross income of your 1040 tax form of 2017. (line item 37, please check with your tax advisor)