IRS Individual Mandate Penalty

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Individual Mandate – Shared Responsibility –
Penalty for not having Health Insurance
Just added back in!  

CA legislature passes legislation SB 175 and AB 414 to put mandate back in! CA KCRA

This is all VERY NEW.  We are waiting for the materials from the official agencies and Insurance Companies.

Insure Me Overview 


CA fights Trumps attacks on ACA/Obamacare LA Times 8.15.2019 *

The New Tax Bill HR 1 Tax Cuts & Jobs act drops the mandate penalty to zero, but many would argue the mandate is still valid.  Congress could put a financial tax penalty back in, see Texas v USA –  CA   brief page # 34.



(a) In General.—Section 5000A(c) is amended—

(1) in paragraph (2)(B)(iii), by striking “2.5 percent” and inserting “Zero percent”, and

(2) in paragraph (3)—

(A) by striking “$695” in subparagraph (A) and inserting “$0”, and

(B) by striking subparagraph (D).

(b) Effective Date.—The amendments made by this section shall apply to months beginning after December 31, 2018.

Obama Care imposes a  Individual Mandate – Tax Penalty  of 2.5% of income (calculate it)  on just about ALL legal residents, if you don’t Purchase Health Insurance.  Your coverage must include the 10 Essential Minimum Benefits and meet the definition of Minimum Essential Coverage (MEC),  unless you qualify for an exemption, 5000 A).   Just check off on line 61 of your 1040 that you complied.   You will also get a 1095 from your Insurance Company.  

The Health Care Law provides for  subsidies and tax Credits to help you pay the premium.  We can help you with that at no additional charge.  Complementary quotes for compliant guaranteed issue plans.  

You might also talk to your Employer about providing Coverage. Tell him he can get a FREE Quote  and it’s tax deductible for him and tax free to you §106 IRC.

Email us if you have any questions or use the form below. 

Complementary quotes for compliant guaranteed issue plans

Individual Shared Responsibility Provision

The individual shared responsibility provision requires everyone on your tax return to have qualifying health care coverage for each month of the year or have a coverage exemption. Otherwise, you may be required to make an individual shared responsibility payment.


  • If you maintain qualifying health care coverage for the entire year, you don’t need to do anything more than report that coverage on your federal income tax return by simply checking a box. Qualifying coverage includes most employer-sponsored coverage, coverage obtained through a Health Insurance Marketplace, coverage through most government-sponsored programs, as well as certain other specified health plans.
  • If you go without coverage or experience a gap in coverage, you may qualify for an exemption from the requirement to have coverage. If you qualify for an exemption, you use Form 8965, Health Coverage Exemptions, to report a coverage exemption granted by the Marketplace or to claim a coverage exemption on your tax return.
  • If for any month during the year you don’t have qualifying coverage and you don’t qualify for an exemption, you will have to make an individual shared responsibility payment when you file your federal income tax return.
  • The payment amount for 2015 is the greater of 2 percent of the household income above the taxpayer’s filing threshold, or $325 per adult plus $162.50 per child (limited to a family maximum of $975). This payment is capped at the cost of the national average premium for a bronze level health plan available through Marketplaces that would provide coverage for the taxpayer’s family members that neither had qualifying coverage nor qualify for a coverage exemption. The instructions for Form 8965, Health Coverage Exemptions, provide the information needed to calculate the payment that will be reported on you federal income tax return.
  • Form 1095-B will be sent to individuals who had health coverage for themselves or their family members that is not reported on Form 1095-A or Form 1095-C. Form 1095-A will be sent to individuals who enrolled in health coverage for themselves or their family members through the  Marketplace. Form 1095-C will be sent to certain employees of applicable large employers.
  • Some taxpayers may not receive a Form 1095-B or Form 1095-C by the time they are ready to file their 2015 tax return. It is not necessary to wait for Forms 1095-B or 1095-C in order to file. Taxpayers may instead rely on other information about their health coverage and employer offer to prepare their returns

Here are some basic facts about the individual shared responsibility provision.

What is the individual shared responsibility provision?

The individual shared responsibility provision calls for each individual to have qualifying health care coverage – known as minimum essential coverage – for each month, qualify for an exemption, or make a payment when filing his or her federal income tax return.

What do I need to do if I am required to make a payment with my tax return?

If you have to make an individual shared responsibility payment, you will use the worksheets found in the instructions to Form 8965, Health Coverage Exemptions, to figure the shared responsibility payment amount due. You only make a payment for the months you did not have coverage or qualify for a coverage exemption.

To learn more, visit the Reporting and Calculating the Payment page on, or use our interactive tool, Am I Eligible for a Coverage Exemption or Required to Make an Individual Shared Responsibility Payment?

What happens if I owe an individual shared responsibility payment,
but I cannot afford to make the payment when filing my tax return?

The IRS routinely works with taxpayers who owe amounts they cannot afford to pay. The law prohibits the IRS from using liens or levies to collect any individual shared responsibility payment. However, if you owe a shared responsibility payment, the IRS may offset that liability against any tax refund that may be due to you.

For more information about the Affordable Care Act and your income tax return, visit


7.5 million paid an average of $200 in penalties for not having coverage in 2014 per Kaiser Health News 7.22.2015

White House.Gov Affordable Health Care Act YouTube Channel


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