If you can afford 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,” “fine,” or “individual mandate.”)
- You owe the fee for any month you, your spouse, or your tax dependents don’t have health insurance.
- You pay the fee when you file your federal tax return for the year you don’t have coverage.
- In some cases, you may qualify for a health coverage exemption from the requirement to have insurance.
The fee for not having health insurance in 2016 is calculated 2 different ways – as a percentage of your household income, and per person. You’ll pay whichever is higher.
- 2.5 percent of household income: There is a maximum: Take the national average price of a Bronze plan sold through the Marketplace X 12 = Maximum per family is $2085
- $695 per adult
- $347.50 per child under 18
- Using the percentage method, only the part of your household income that’s above the yearly tax filing threshold ($10,150 for individuals, $20,300 for couples filing jointly in 2014, the most recent year available) is counted.
- Using the per-person method, you pay only for people in your household who don’t have insurance coverage.
- If you have coverage for part of the year, the fee is 1/12 of the annual amount for each month you (or your tax dependents) don’t have coverage. If you’re uncovered only 1 or 2 months, you don’t have to pay the fee at all.
For more information, contact me at my website, or read more about health insurance here: http://insurancenana.com/