If your able to afford health insurance but choose not to buy it, you must pay a fee called the individual shared responsibility payment. Also known as a Penalty or Fine
- For any and every month that you do not have health insurance, you will owe the fee.
- You pay the fee when you file your federal tax return for the year you don’t have coverage.
- Do you qualify for health coverage exception? Read more: https://www.healthcare.gov/exemptions-tool/
What is the fee for not having health insurance?
The fee is calculated 2 different ways – as a percentage of your household income, and per person. You will pay which ever is higher.
For tax year 2016, the penalty will rise to 2.5% of your income, or $695 per adult and $347.50 per child, to a maximum of $2,085.
For tax year 2017 and beyond, the percentage option will remain at 2.5%, but the flat fee will be adjusted for inflation.