Obamacare Tax Penalties

Affordable Care Act

Obamacare Tax Penalties

Updated on November 15, 2019

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If you don’t have major medical health insurance that meets minimum Federal standards for more than two months in a row, you may incur a tax penalty when you file your income taxes. Keep in mind that while the fine at the federal level has been repealed, you may face a fine depending on which state you live in.

Calculating Obamacare tax penalties

Tax penalties are pro-rated by the number of months you’re uninsured. In 2018, the penalty for going uncovered will be $295 per adult or 2.5% of your household income, whichever is higher.
In 2017, the Trump administration repealed the individual mandate (requirement for everyone to have health insurance), which will apply in 2019. As for 2018, there is still a requirement to have health insurance, or face tax penalties. You may still have to pay a tax penalty when you file your 2018 tax return in early 2019

This table also breaks down how the penalty would be applied each year:

Household Size Annual Income as a Percentage of the Federal Poverty Level (FPL)
133%FPL 250%FPL 300%FPL 400%FPL Above 400%
Family Size 1 $15,521(-$10,150) = $5,371 $29,175(-$10,150) =$19,025 $35,010(-$10,150) = $24,860 $46,680(-$10,150) = $36,530 $46,681+
2014 Yearly Penalty -Minimum: $95 per adult, $47.50 per child. 1.0% = Minimum $95 1.0% = $190.25 1.0% = $248.60 1.0% = $365.50 Up to $2,448 per adult1
2015 Yearly Penalty-Minimum: $325 per adult, $162.50 per child 2.0% = $107.42You pay = Minimum $325 2.0% = $380.50 2.0% = $497.20 2.0% = $730.60 Up to $3,8162
2016 Yearly Penalty–    Minimum: $695 per adult, $347.50 per child 2.5% = $134.27You pay = Minimum $695 2.5% = $475.64You pay = Minimum $695 2.5% = $621.50You pay = Minimum $695 2.5% = $913.25 Up to $4,0452
2017 Yearly Penalty-    Minimum: $695 per adult, $347.50 per child 2.5% = $134.27You pay = Minimum $695 2.5% = $475.64You pay = Minimum $695 2.5% = $621.50You pay = Minimum $695 2.5% = $913.25 Up to $4,0452

1 (As published by the IRS: http://www.irs.gov/uac/ACA-Individual-Shared-Responsibility-Provision-Calculating-the-Payment)
2 (As projected by the Tax Policy Center: http://taxpolicycenter.org/taxfacts/acacalculator.cfm)

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