If you can manage health insurance but choose not to buy it, you must pay a fee called the individual shared responsibility payment. (The fee is sometimes called the “penalty for no health insurance,” “fine,” or “individual mandate.”)
- You owe the charge for any month you, your partner, or your tax dependents don’t have qualifying well-being protection (typically referred to as “minimal necessary protection”). See all insurance types that qualify.
- You pay the charge if you file your federal tax return for the 12 months you don’t have protection.
- In some cases, you may qualify for a health coverage exemption from the requirement to have insurance. If you qualify, you won’t have to pay the fee. Learn about health coverage exemptions.
What is the penalty for not having health insurance:
The fee of penalty for no health insurance is calculated by two different ways – as a percentage of your household income, and per person. You’ll pay whichever is higher.
Percentage of income:
- 2.5% of household income
- Maximum: Total yearly premium for the federal average price of a Bronze plan sold in the Insurance Marketplace
- $695 per adult
- $347.50 per child under 18
- Maximum: $2,085
Fee for health insurance penalty 2017:
- Using the percentage rule, only the part of your household income that is higher the yearly tax filing claim is counted.
- Using the per-person rule, you pay only for people in your household who do not have health insurance coverage.
- If you have insurance coverage for part of the year, the fee is 1/12 of the yearly amount for each month you or your tax dependents who don’t have coverage. If you’re uncovered only 1 or 2 months, you do not have to pay the insurance fee at all. Learn about the “short gap” exemption.
- You pay the fee when you file your federal tax return for the year you don’t have coverage.
Estimating your fee:
If I’m unemployed, do I’ve to pay the fee?
Your family earnings determine that you have to pay penalty for no health insurance or not. If insurance coverage is unaffordable to you primarily based on your earnings, it’s possible you’ll qualify for an exemption from the charge. Different exemptions are mainly based on low earnings too. Learn more about exemptions and how to claim them.
What happens if I don’t pay the fee?
If you do not have health insurance the IRS will maintain the quantity of the charge from any future tax refunds again. There are no any liens, levies, or criminal penalties for missing to pay the fee.