Is There Still A Penalty For No Health Insurance
Is there still a penalty for no health insurance? Due to recent changes in federal healthcare laws, the tax penalty for not being enrolled in health insurance will end in 2019 plan year. So, yes, there’s a penalty if you could afford health insurance in 2018 but choose not to buy it. The rule guarding the current and preceding tax season, is that you either have qualifying health coverage, pay a penalty, or qualify for exemption. The purpose of individual mandate fee was to protect households from the possibility of not being able to pay off their medical expenses in the event of injury or ill-health, because they don’t have insurance coverage.
Is There Still A Penalty For No Health Insurance?
Is there still a penalty for no health insurance this year? Starting from 2020 tax season, you will not be penalised for not having health insurance. But as far as the current tax year goes, you may owe a penalty called the individual Shared Responsibility Payment or individual mandate for any month in 2018 for which you, your spouse, or your tax dependents didn’t have minimum essential health coverage otherwise called qualifying health coverage).
Bear in mind however, that this is a federal law and individual states laws may still have health insurance penalties beyond 2019.
Penalty for Not Having Health Insurance Calculator
Penalty for not having health insurance calculator will compute the penalty using either as a percentage of your yearly household income, or per person in your household with no healthcare coverage. You pay the higher of the two options. For the percentage method, any income below your yearly tax filing requirement is not counted. If you owe health insurance penalty and do not pay, the amount owed will be held back from your future tax deductions.
Tax Penalty for No Health Insurance 2018
The tax penalty for no health insurance in 2018 is payable when you file your federal tax return for 2019 tax year. For 2018, the tax is the higher of $695 for adults and $347.50 for children or 2% of your annual income.
Health Insurance Penalty Exemption
Health insurance penalty exemptions are based on your having a low income. You may qualify for an exemption if you couldn’t afford insurance based on your income.
For more information please call ObamacareQuotes today at (800) 811-2640