In 2016 the tax penalty for not having Health Insurance that complies with the law, is $695 a year per adult and $347.50 per child or 2.5% of income whichever is higher. IRC 5000A (Mandate PLUS?) Final Regulations Proposed Rules Congressional Budget Office HN Pulse After that there are cost of living adjustments and see chart below right.
Learn More ⇒ Kaiser Foundation
How to calculate the Penalty
if you didn’t get coverage and don’t have an exemption.
Six changes Trump can still make to ACA NPR 3.29.2017
- IRS Website on calculating the penalty
- Friendly Competitors Webpage on how to calculate the penalty
Instructions on how to appoint us as your Covered CA Certified Agent – No Extra Charge. We only get compensated when you appoint us.
Resources & Links
Be wary of tax scams New York Times 1.31.2016
Click here to enroll in year around Agent support for your Covered CA account at no additional charge.
Analysis by TheHill.com 4.24.2015 says the penalty is too low to encourage enrollment.
Related Pages in the Mandate Section
- 30% Penalty for not having prior coverage – Donald Care AHCA §133
- Tax Penalty 2.5% of Income Calculation Mandate
- Who is mandated to get Health Insurance?
- §5000 A – Requirement to maintain Health Insurance
- Exemptions – Mandate IRS Form #8965
- Flow Chart – Are you mandated to get Health Insurance?
The individual shared responsibility provision requires that you and each member of your family have qualifying health insurance, a health coverage exemption, or make a payment for any months without coverage or an exemption when you file. If you, your spouse and dependents had health insurance coverage all year, you will indicate this by simply checking a box on your tax return.
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 IRS.gov/aca, 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 IRS.gov/aca.
Issue Number: HCTT-2016-18
Inside This Issue
Reporting Health Coverage on IRS Tax Forms
While most taxpayers will simply need to check a box on their tax return to indicate they had health coverage for all of 2015, there are a few forms and specific lines on Forms 1040, 1040A, and 1040EZ that relate to the health care law.
To help navigate health coverage reporting, you should consider filing your return electronically.Using tax preparation software is the best and simplest way to file a complete and accurate tax return as it guides you through the process and does all the math. There are a variety of electronic filing options, including free volunteer assistance, IRS Free File for taxpayers who qualify, commercial software, and professional assistance.
Here is information about reporting health coverage:
Form 8965, Health Coverage Exemptions
- Complete this form if you need to claim a coverage exemption on your return or report a Marketplace-granted coverage exemption.
- Use the worksheet in the Form 8965 Instructions if you need to calculate the shared responsibility payment.
Form 8962, Premium Tax Credit
- Complete this form to claim this credit on your tax return, and to reconcile advance payments of the premium tax credit.
Form 1095, Health Care information Forms
- If you enrolled in coverage through the Health Insurance Marketplace, you should receive Form 1095-A, Health Insurance Marketplace Statement, which will help complete Form 8962. Wait to file until you receive this form.
- Your health coverage provider or your employer may furnish you with a Form 1095-B, Health Coverage, or Form 1095-C, Employer-Provided Health Insurance Offer and Coverage. You do not have to wait to receive these forms before your file your tax return.
- See our questions and answers for more information about how these forms affect your tax return.
- Line 46: Enter advance payments of the premium tax credit that must be repaid
- Line 61: Report health coverage or enter individual shared responsibility payment
- Line 69: Report net premium tax credit if the allowed premium tax credit is more than advance credit payments paid on your behalf
- Line 29: Enter advance payments of the premium tax credit that must be repaid
- Line 38: Report health coverage or enter individual shared responsibility payment
- Line 45: Report net premium tax credit if the allowed premium tax credit is more than advance credit payments paid on your behalf
- Line 11: Report health coverage or enter individual shared responsibility payment
- Form 1040EZ cannot be used to report advance payments or to claim the premium tax credit
Here’s the 4-1-1 on Calculating an Individual Shared Responsibility Payment
In 2015 – the tax penalty for not having Medical Coverage is about $325 a year or 2% of family income. IRC 5000A (Mandate PLUS?) Final Regulations Proposed Rules Congressional Budget Office The Fine Capped at $2,448 per person and $12,240 for a family of five. HN Pulse