If you or anyone in your household does not have health insurance for more than two months as of January 1, 2015, you will be subject to a tax penalty, also known as an individual responsibility payment, for each month you are uninsured.
The amount will be figured on your federal tax return, with payment due by the tax return filing deadline.
The penalty for 2015 returns (due April 18, 2016) is whichever amount is greater:
- 2 percent of your household income or
- $325 per adult and $162.50 per child under 18, but not more than $975
Calculate your 2015 tax penalty with TaxAct's Healthcare Tax Penalty Calculator.
The 2016 penalty is $695 per adult and $347.50 per child, up to $2,085 or 2.5 percent of household income – whichever is greater.
After 2016, the amount will increase annually by the federal cost-of-living adjustment.
Certain situations may result in an exemption from paying the penalty. For example, you may be exempt if the lowest available plan costs more than 8.05 percent of your household income, your income is below 100 percent of the federal poverty level and your state hasn't expanded Medicaid, you're a member of a federally recognized tribe, you've experienced a qualified hardship or you don't have to file a tax return. Learn more about exemptions.
If you qualify for an exemption, visit www.healthcare.gov/exemptions to see if you need to file an exemption application. If your application is accepted, you'll be issued an exemption certificate number (ECN) that you'll report on your tax return. Exemption applications may take several weeks – even months – to process, so don't wait to apply - doing so could delay the processing of your tax return and your tax refund!