What is my penalty if I don't have health insurance?
- Financial hardship
- Religious objections
- American Indians
- Those uninsured for less than three months
- Undocumented immigrants
- Incarcerated individuals
- Those with incomes below the tax filing threshold
- Those for whom the lowest cost plan option exceeds 8% of income
- Find the annual premium for one of the lowest-quality plans in a state exchange;
- Figure how much Premium Tax Credit you would qualify for;
- Subtract the credit from the premiums amount;
- And divide the resulting number—your out-of-pocket expense—by your family's modified adjusted gross income.
The penalty is incurred for any month you are uninsured, but you may be uninsured for up to three months without penalty. The annual penalty is capped at an amount roughly equal to the cost of the national average premium for a qualified health plan — in other words, what it would have cost to buy insurance in the first place. The calculator assumes being without insurance for a full year.
If you owe a penalty, you'll pay it as a tax liability on your federal tax return. The penalty is enforced by the Treasury, but if you fail to pay the penalty, you will not be subject to criminal penalties, liens or levies.
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