[Updated] Will i still have to pay health insurance penalties (under the Obamacare individual mandate)? This is the question a lot of Americans are asking. The short answer is NO from 2019. Here is why the individual mandate, a.k.a Obamacare penalty, is no longer in effect from 2019:
While Congressional Republicans were unable to muster the required majorities to pass several versions of House and Senate health care replacement bills, they were able to include a provision to repeal the individual mandate (i.e. the Obamacare penalty) via successfully passing their GOP tax reform bill to support President Trump’s tax reform agenda.
While the Obamacare penalty applied for 2017 and 2018 tax filings (per details and amounts below), for 2019 the Affordable Care Act (ACA) individual mandate provision requiring every eligible American to obtain health insurance or pay financial penalty when filing taxes has been permanently scrapped.
The individual mandate repeal does not mean that Obamacare or the broader ACA is dead – health insurance marketplaces and provisions like coverage for children under 26 are still in place. But it does deal a massive blow to the long term sustainability of ACA as it was based on ensuring enough healthy people buying health insurance (hence the penalty) to offset costs for providing subsidizing insurance to those who could not afford or were ineligible for employer sponsored insurance.
I will update as more details are made available and encourage you to follow or share this article via Facebook or Twitter.
ObamaCare or the Affordable Care Act (ACA), is the law of the land now which means that all Americans with an income above a certain threshold have to purchase or have health insurance. The provision referred to as the individual mandate is what legally required most US citizens and legal residents to obtain private, employer sponsored or public health insurance (through state run exchanges). Based on the most recent data available it is estimated that the majority of the US population gets health insurance through their employers while 50 million people are uninsured. The remaining consumers either buy their own private insurance or are covered by federal/state government programs, such as Medicaid and Medicare.
Here is a summary table of the standard penalties for not having health insurance. Details on how the penalty is applied and individual exemption mandates are provided in subsequent sections.
|Year||Penalty (Single)||Penalty (Family)||Maximum Penalty|
|2019||No penalty||No penalty||No penalty|
|2018||$695 or 2.5% of income||$2,085 or 2.5% of income||$13,100|
|2017||$695 or 2.5% of income||$2,085 or 2.5% of income||$13,100|
|2016||$695 or 2.5% of income||$2,085 or 2.5% of income||$13,000|
|2015||$325 or 2% of income||$975 or 2% of income||$12,500|
|2014||$95 or 1% of income||$285 or 1% of income||$9,800|
See this article for details on Republicans/Trump’s American Health Care Act (ACHA) to repeal individual mandate penalties and provide tax credits to offset the cost of providing insurance.
Individuals: For the 2014 tax year (reported/filed in 2015), individuals who did not have insurance would owed $95, or 1 percent of income, whichever is greater. For the 2015 tax year it rose to the greater of $325 or 2 percent of income. But the penalty for 2016 rose yet again, reaching $695, or 2.5 percent of income, whichever is greater. From 2017, the minimum tax penalty per person will rise each year with inflation. Estimates are provided on the table above and it is likely 2017 penalties and maximums will remain the same as 2016 given the low inflation environment. And for children 18 and under, the minimum per-person tax is half of that for adults ($47.50). The tax penalty is pro-rated, so that a person who is not covered for only a single month would pay 1/12th of the tax that would be due for the full year.
While the focus is on the $95 (single adult) penalty, the actual penalty may be much more for higher income people because the percentage component of the penalty comes into play. For example, a single person whose MAGI is $35,000 and elects not to have health insurance, may be liable for a penalty of $249 ($35,000 – $10,150 = $24,850 x 1% = $249).
Families: For families the 2014 health insurance non-compliance penalty was capped at $285 per family, or 1% of income, whichever is greater. In 2015 it rose to the greater of $975 or 2 percent of income. For 2016, the penalty jumped sharply to $2,085 per family, or 2.5% of income, whichever is greater. From 2017, the penalty/tax will rise in line with inflation. The minimum amount per family is capped at triple the per-person tax, no matter how many individuals are in the taxpayer’s household. So, for example, a couple with one child over 18 (or two children age 18 or under), and no coverage, would pay a minimum of $285 in 2014, $975 in 2015 and $2,085 in 2016. And that would be the minimum no matter how many uninsured dependents a taxpayer has.
The maximum penalty (under the percentage of income criteria) is capped at the national average price of a bronze plan sold through the health insurance marketplace. For 2014 the maximum was $9,800, $12,500 in 2015 and then $13,000 in 2016. The 2017 maximum penalty is expected to stay the same as 2016 or rise marginally in line with inflation.
Individuals or families who fall below income-tax filing thresholds would not owe anything or get subsides or credits to offset health insurance costs (see section below on Health care premium tax credit). People who are unemployed or cannot find a policy that costs less than 8% of their modified adjusted gross income would also be exempt from penalties under the individual mandate. On the other hand, to offset the cost of providing insurance to low income households, individuals making more than $200,000 a year and couples earning above $250,000 will get additional health care taxes deducted as payroll taxes. These people are also hit with a 3.8 percent tax on investment income.
Employers: For employers with 50 or more workers could face federal fines for not providing insurance coverage. Several of the other changes would take effect much sooner. For the current and future impacts of health insurance on employers see this article.
Do I still have to pay the no coverage (individual mandate) penalty with Trump/GOP bill to repeal Obamacare?
President Donald Trump along with Congressional Republicans have started the process to repeal Obamacare in 2017 via the American Health Care Act (ACHA). The challenge they are current facing is that their still isn’t broad consensus for this Obamacare replacement plan and implementing a full replacement will take months, if not years. Without an effective replacement plan an ACA repeal could leave millions without access to health insurance and create significant financial turmoil within the American healthcare system. From a health care penalty perspective, there is the strong expectation that the individual mandate will be removed from 2018 if the ACHA bill is passed (changes may be retroactive). This means that those without health insurance in 2017 may only be subject to a partial or no penalty when filing taxes in 2018.
Note however that President Trump has signed an earlier Executive order that directed federal agencies to to waive or exempt health law-related provisions that would impose costs or penalties on individuals, to the extent permitted by law. But this “hardship clause” does not mean that taxpayers should NOT pay the penalty or delay filing ahead of any formal repeal law.
How Individual Health Care Coverage Will be Monitored
Employers have had to state the value of the health care benefits provided to each employee on their W-2 at the end of each year. Insurers (including employers who self-insure) that provide minimum essential coverage to any individual during a calendar year will also have to report certain health insurance coverage information to both the covered individual and the IRS. Thus, the IRS will ultimately be responsible for reporting an individuals and business’ non-compliance with purchasing health insurance.
Obamacare/Affordable Care Act Tax Forms
A number of tax payers will have more complicated tax returns this year with the need to account for health insurance coverage as part of the individual mandate of the new Affordable health care laws.
Taxpayers who get their health insurance through their employer or government sponsored programs like Medicare or Medicaid, which will be the majority, will be able to prove their compliance via their tax filing by check a box on their normal tax (1040 series) return validating they had insurance. But those who bought insurance on the health insurance exchanges with the help of federal subsidies (see below for income qualification levels) will receive a form 1095-A detailed their coverage and have to reconcile their payments with their income level. HealthCare.gov, the federal exchange that serves 37 states, started to mail out 1095-A forms to customers said all forms should be mailed out by the end of January. This end of month deadline is also the same for state-run exchanges
Those who failed to report raises or bonuses to their respective health exchanges may have to pay back some amount of subsidy for purchasing health insurance via these exchanges. This may require them to complete additional forms (Form 8965 or 8962) to claim exemptions and determine the allowed premium tax credit.
Checking if you have the minimum essential coverage to meet the individual mandate
The IRS has provided details on what constitutes coverage under the new health care laws. If you meet this coverage you won’t face penalties.
There are also certain allowed exemptions from the individual mandate that include items like
- Being uninsured for less than 3 months of the year
- The lowest-priced coverage available to you would cost more than 8% of your household income
- You don’t have to file a tax return because your income is too low
- You’re a member of a recognized religious sect with religious objections to insurance, including Social Security and Medicare
- You’re incarcerated (either detained or jailed), and not being held pending disposition of charges
- You’re not lawfully present in the U.S. (illegal immigrants)
- You qualify for a hardship exemption (homeless, evicted in the past 6 months, received a shut-off notice from a utility company etc)
But you will need to show evidence for these in your tax return (Form 8965) with your tax return. when claiming the exemption and the IRS will be checking these quite thoroughly.
US citizens or residents who reside overseas and meet the IRS foreign residency criteria (generally 330 full days outside of the U.S. during a 12-month period) can also claim exemption from the individual mandate penalty via Form 8965. If living overseas for a partial period of time that does not qualify you as a foreign resident for tax purposes coverage provided by your local employer (under an expatriate health plan) can count as qualified health coverage that precludes them from the penalty. One exemption that may be particularly relevant to U.S. citizens living abroad for a small part of a year is the exemption for a short coverage gap. This exemption provides that no shared responsibility payment will be due for a once-per-year gap in coverage that lasts less than three months.
ObamaCare Premium Tax Credit Subsidy and Federal Poverty Levels (FPL)
Lower income Americans that purchase health insurance under the Affordable Care Act may also be eligible for a premium tax credit or subsidy. This is paid in the form of a tax credit (in advance or when filing your tax return) and is based on household size and income relative to the federal poverty levels (FPL). To qualify for the premium tax credit the household modified adjusted gross income (MAGI) has to be between 100% and 400% of the FPL. This is shown in the table below for different household sizes. The actual amount of the tax credit will vary based income and household size, but can only be claimed if you purchase health insurance through a healthcare marketplace or exchange.
|# Persons in Household||2015 - 100% FPL income threshold||2015 - 400% FPL income threshold||2016 - 100% FPL income threshold||2016 - 400% FPL income threshold|
|9+||add $4,160 for each additional person.||add $16,640 for each additional person.||add $4,160 for each additional person||add $16,640 for each additional person|
Note: FPLs are higher in Alaska and Hawaii than in the mainland 48 states. The above limits increase with inflation every year. Eligibility for the subsidy/tax credit is based on income limits for the prior year (e.g your 2017 subsidy is based on your 2016 income levels).
558 thoughts on “No 2019 and 2020 Tax Penalty For Not Having Health Insurance Under ObamaCare”
Health insurance should be left to individuals to decide if they need it. I tried to get it thru market place for months to finally find someone to tell me i dont qualify ! Wow what help! cant even get Medicaid! I elect exempt and take my chances. I am healthy and Dr. bills are CHEAPER!!
If you let individuals decide if they need insurance is folly. How could you know if you need it or not. A car accident or terminal illness or other events can strike at any time. You could have over a million dollars in hospital bills. You decided you “didn’t need” health insurance. So I guess society is supposed to let you die based on your false assumption? No, of course not, the taxpayers pick up your tab. Is having to purchase it a heavier burden on the poor than the wealthy. Of course it is. Just like everything else.
I’m so disappointed that I’ll have to wait 2 years before I get relief from this tax penalty. My household income is around $30,000 per year, and they think I should be able to pay $1000 per month with a $6000 deductible for health insurance that I can’t afford to use because the deductible is high too. They use gross income, not my income that they already taxed to death. It ridiculous. I absolutely cannot afford it. I’ll end up bankrupt. Forget my house payment and car insurance. Forget having electricity and heat…..let’s give it all to unaffordablecare!
I agree completely. Ridiculous. My employer wants $1200 twice a month to cover my family of 4.. no one can afford that. So I looked into ACA and was told just for my husband, it would cost me $250 a month.. again, there’s 4 of us. Please tell me how I can afford this!??!?
I agree. We’re not considered “low income” but we also cannot afford the high cost of insurance. Why aren’t the bozos in Washington doing something about the insurance companies who have significantly raised rates and deductibles since the onset of Obamacare? We’re looking at over $200 per week premiums (1/3 of our income) and $10,000 deductibles. The year prior to Obama care, it was $50 per week for far better coverage and only $500 deductible. Where’s the affordability?
IN MY OPINION: WHAT IS A JOKE IS “TRUMPCARE”-YOU SHOULD BE ABLE TO QUALIFY FOR MEDICAID BASED ON YOU ZERO INCOME. —THE REPUBLICAN DOMINATED CONGRESS NEVER DID DO ANYTHING TO FIX THE FAULTS OF OBAMACARE. —THE REPUBLICANS SHOULD HAVE PUMPED MORE MONEY INTO MEDICAID AND IN ORDER TO PAY FOR THE HEALTH NEEDS OF THE LOW INCOME PERSONS.—INSTEAD-THEY GAVE BILLIONS OF DOLLARS IN “WELFARE TAX CUTS” TO T HE RICH! —SEMPER FI!
I have been disabled with NO income for 3 years because of a diabetic ulcer on the bottom of my foot. I am 59 years old. Do not qualify for medicaid, have tried to obtain insurance with Obamacare. I live in Texas, so even if I did have medicaid, I cannot afford Obamacare. I was quoted a monthly premium, based on my income (which is ZERO) of $465.00 with a huge deductible of about $7000. Obama care is NOT affordable, not for guys like me. If it weren’t for family I wouldn’t even have a place to live, I’d be on the street to fend for myself and NO care for my foot. Obamacare is a joke and is not for everyone. Supposed to help people like me and I am positive I am not alone in this.
Fake News? says he put that oher guys income and age with a standard deduction into the health plan finder calculator and says this guy qualifies for FREE insurance? I have not been able to locate this particular feature.
You need to get onto SSDI. It’s a slow process that takes about two years, but you should be able to get it at age 59, as it becomes much easier to qualify at age 55. You’ll need an attorney to win, but it should be doable. Once you get Social Security disability, it will come with Medicare or Medicaid, depending on how you qualify.
Why I’m I getting CONFLICTING REPORTS a health care insurance expert clearly stated on NPR that their would be a penalty for 2018. That the REPEEL of the INDIVIDUAL MANDATE takes effect in 2019. That is not what this website states and every other newscast skips over the facts to start spewing political b.s. My county has Kaiser Permanente now so at $1951 yr it’s finally affordable. I still have time here in California
You are correct and the repeal of the individual mandate is in fact from 2019 onwards. I had stated 2018 incorrectly as was making live updates as details were coming out. I have updated article and thank you for letting me know.
Fining Americans for not paying into the ACA or anything like it, is ridiculous and lining the pockets of the already rich. More Americans need to wake up and realize that this is a rip off, and not helping many of us. For me, it cost over $500 a most for insurance that I can’t use because of a deductible of over $3000. I’m healthy and see my doctor once a year, and have blood work done once a year. This all costs under $300. That’s under $300 a year compared to over $500 a month for insurance that can’t be used. And if you get help with paying your monthly premium, you don’t receive a federal refund. Many doctors don’t agree with fines and ACA policies. You end up paying them less because you’re taking money to pay for your premium and then paying them. A LOT of doctors offices now will put you on a monthly payment plan for services rendered, and paying them directly benefits both parties. You save thousands, and your doctor gets paid. Yes, I understand there are those who are terminally ill and so on, and need insurance. For the rest of us, we should have a choice without being fined and/or singled out. I may not be a Trump fan, but I do agree with him 110% in abolishing the ACA.
I consider it nothing less than extortion.
The tax bill passed by the Senate yesterday includes a provision to repeal the Obamacare tax penalty. YES!! Can’t wait for the House and Senate to reconcile their differing versions and for the bill to be signed into law. They’re hoping it will be done by Christmas. Fingers crossed that it all goes smoothly and quickly. It’s about time for that unconstitutional fine to go away! Especially since the marketplace health plans are anything but affordable.
So true! The OUTRAGEOUS Healthcare Premiums & Deductibles offered to individual Middle Taxpayers are totally UNACCEPTABLE!!!
The Supreme Court ruled the fine is constitutional because it is considered a tax. You don’t think Trump eliminated the fine because he’s Mr. Nice Guy. He did it to gut the a.c.a. and stop subsidies and kick 40 million poor off the rolls so he and his cronies can get richer.
Obama was right about only one thing. He did redistribute our wealth !
Unfortunately it all went into the pockets of the insurance companies.
What a total disaster !
This was the plan from the beginning… Americans started doing better, so we’re now forced to pay for something we can’t use, which in turn lines the pockets of the already wealthy. Insurance companies sit back and collect a monthly premium, and don’t have to spend a dime on the policies they’ve sold to us. It’s ingenious! Now people are catching on, but only after companies and made tens of millions by doing nothing. The government literally legalized a way to sell a product without actually having to provide the product after purchase, so no laws were broken there. Accept for the fine when taxes roll around, but then again, the government can get away with anything if they says it’s a matter of national security.
I will have a 4 month gap between when I go off my old employer healthcare and onto my new employer healthcare. What would the penalty be (more or less) for a 4 month gap in coverage if I chose not to insure during that period?
According to the article above
2018 $695 or 2.5% of income $2,085 or 2.5% of income $13,100
or 4/12 of $695 or 2.5% of your income , whichever is higher.
Anything that’s being subsidized will become priced out of reach for most people and necessitate more subsidies.
It’s not just healthcare. I was making arrangements to go back to school this fall and had paid up my tuition. I go to the bookstore and see that – since 2009 (when I was last there) the prices have TRIPLED. And the “textbooks” I was looking at were mostly not even books. You used to be able to go buy a real book for between $60 and $100 just a short time ago. Now it’s $200 to $300 to buy a book that’s just loose pages, hole-punched and wrapped in plastic. And they don’t sell used most of them because you need a one-time CD that comes with the book to access the course (thought paying for tuition was paying for access to the course…). Why is it like that? Because high schools have been funneling these kids directly into this college and they all get book lines of credit. So why not jack up the prices?
I have a mind to just look out for myself and contribute nothing to society. Bleed some other suckers out. Goes for healthcare too. My appendix bursts or I break an arm or something, just let me take my chances. My life ain’t worth what you’re charging.
I agree with you, Buttercup. For much of my life I skipped medical coverage. It should be our choice, not the government’s.
My family quote for 4 is $1700 for a silver plan with a $6k deductible. Who is the world thinks this is affordable? Both Democrats and Republicans has screwed all the citizens. We should create a third party and get rid of all this politicians and start over. Never vote for any incumbents.
“Both Democrats and Republicans has screwed all the citizens” Pay attention…not one Republican voted for Obamacare..ZERO!
I own two house and pay 1300 a mont for bot of them. Family insurance is between 1000 and 1940 a month. More then two house payments a month
It’s just a big, and disgusting SCAM. The Republicans NEVER had ANY INTENTION of getting rid of the ACA! $380/month for Bronze level ‘coverage’, with a $7000 deductible. SCUM BAGS! It’s better to pay the SICK FINE! What an EVIL system!
How about doctors/hospitals etc. charging MUCH LESS? Greedy b……s!
I do not think it’s the Republicans, it’s those who signed the Affordable Care Act and are receiving concessions collected by the IRS thru the premiums we pay. The ACA was written i n 2010, it will be completely implementated in 2020, at which time, those congressmen and Senators will receive all the concessions they were given to sign Obama’s ACA bill. After 2020, it’s inplementstion is complete so i feel tHe current admiistration has been blocked in order for the greedy politicians to keep collecting our tax dollars. Remember the Supreme court found the mandate to have to have to purchase health insurance to be a TAX not an insurance premium
I love that everyone is speaking up about these very real issues – especially now that silent good hard working people are finally speaking up.
We were cancelled for a missed payment of $1700, a month for 3 people. We are barely able to pay bills and the insurance just is icing on the cake…. those of you who are wealthy , pray you are never in this position where you can’t afford health care as it is expensive…
Why would you pay 1700/m for healthcare? It would be cheaper to just pay for the penalty and self pay for any doctor visits, ER visits, meds, etc. Do you really think your health costs for the year cost you 20,400? Plus I’m sure for 1700 you still had a deductible and copays. Healthcare coverage is out of control – your basically paying as a gamble if your going to get sick or injured. But if you REALLY got sick like cancer/stroke or injured and could not work then probably then the state would kick in… remember the state who you pay to ever paycheck. Your entitled if you need it. So why not just drop the insurance and just save the money to pay your bills – put a little aside every month “just in case” you need it for a doctor visit/shots/ER visit/Meds etc. The money you’ll be saving is a relief and you’ll see how you really don’t NEED the coverage you have been conditioned to think you need.
My comment to the dumb ass doctor. This is the free world don’t you forget it. And we all know what happens when a single-payer takes over and if you don’t know it means if you come down with the disease it’s up to that single-payer whether or not you get the treatment and if you try to raise your own money they won’t accept it because it’s single-payer meaning one person the government we seen this case time and time again and just recently the stupid Muslim care was designed to bankrupt are insurance companies so we go into a single-payer program but before we do the insurance companies rape us for every dollar we have never should the government be able to force the private sector to buy something from another private sector
Thank you to everyone who commented on this article. Being surrounded by people who have their health insurance premiums paid for them, I have felt like I was alone in my struggles to pay my health insurance and my anger for being forced to do so. Reading this article and your comments has made me feel like I’m actually not alone. So, again, thank you.
FINALLY, the Sky was back to Freedom.
No more penalty without healthcare.
I love Trump so so much.
^^ enjoy your freedom life.
It’s a beautiful day.
Nope, Trump made us continue to pay the penalty for not having insurance, and did nothing to improve coverage or health insurance. In fact, now my coverage is worse thanks to his ham handed stab at trying to not pay part of the subsidy, but keeping the rules in place. Trump is now moving on to making middle class people pay more taxes. He’s really just out to make his own family and other rich people’s income higher, you can see by his actions now.
Whats you just said is totally a lie dude all of it.
me and wife filled jointly, my income was 20k. her was $94k.
she has insurance through her company and I don’t. I had to pay $2,300 penalty because our income was jointed. Does anyone know if this is right. I don’t get how I have to pay over $2k penalty and my income was $20k
It depends on your filing status, since you filed jointly, your wife’s income is grouped with yours. If you filed separately, then you might have been able to avoid the penalty, but it depends on other factors as well. So you are paying the penalty since your household income was high and you had no insurance.
Greg is right about filing status. To those of you who don’t know… If you’re facing fines, file separately!! When filing separately, they can not join your income. There are married couples all over the US who file separately for different reasons, but this reason seems to top the charts. The more income you show, the bigger the fine. Last I knew, fines for families were significantly higher than those filing a return as single or separate from their spouse. The fine isn’t just a set amount, it’s also based on a percentage of your income, which means larger fines.
Yes every one pays a fine. IRS got me for $900.00 for 2016 taxes, because of the Healthcare Market place. They do not know what they are doing. Plus President Trump has signed an order for them not to be so strict. But guess what that isn’t phasing the IRS none. Due to what the Healthcare Market place says (their 1095A form) the IRS is collecting every penny that can get out of us working people. It’s all a scam; the insurance isnt worth a dam, that O shitcare insurance should be shoved up that muslim ex want to be thing those pansy ass democrats called a president. And take those sorry stupid no good for nothing insurance companies and ram up behind the liberal democrats so Obama will be full of it a little longer. All the working people are doing is paying for those lazy no good for nothing non working conformists. No help for the backbone working people of supposedly a free country.
Wow! Anger issues. I think you need to check a few facts like the one stating that Mr. Obama is a muslim. Not that there’s anything wrong with that, but he is, in fact, a Christian.
Funny one ahole, he is NOT Christian tardo
The typical American’s health insurance premiums are increasing 20% per year, or more.
Probably a pure coincidence that the profits of Insurance Companies and Hospitals are increasing at 20% per year, or more.
You are right about how bad Obamacare has been for the middle class. But harping on the false claim Obama was a muslim just makes people take the rest of what you say as a lie too. Please dont, you just muddy the waters and invalidate your true claims when you include an outright lie.
Also, Trump did nothing to alleviate the penalty, now we have to pay the penalty AND get worse care. Thanks Trump! Now, watch what he’s doing with taxes: you and I middle class people will pay more again.
Government forcing Americans to make insurance companies profitable. Whether or not I have insurance for my body is none of the government’s business. Those who lobby for insurance companies most certainly had this law shoved down our throats. The government does not own us, and certainly neither do insurance companies. The basic fundamentals of freedom and liberty has been gutted due to the ACA. What is next ? The government forcing us to buy a certain model car ? I am surprised that Americans have complied to this corrupt law. We are being extorted under the “law” simply for being alive. Your flesh , under this law , is claimed by the government and insurance companies. This is very disturbing.
Do you understand the point of what Obama was trying to do? He was trying to have every person to be covered by health insurance to avoid people being rejected by health facilities for not having insurance and to avoid people having high health bills. First of all, healthcare should be free to everyone, no one should have to pay to be healthy. But America is run on greed. My girlfriend had a month lapse in health insurance for one month when she switched employers, and unfortunately had a health issue during that month. Her bill was over 40k when it was all said and done. She can’t afford a bill like that, she would be paying for almost her entire life to pay it off. With health insurance, these bills wouldn’t exist. Your argument can be said for car insurance, every person needs car insurance to drive, but why are you not complaining about that? Instead of being mad at Obama, maybe you should take your frustrations out with the healthcare system that over prices every aspect.
The health care system was fine until Obama got his filthy hands on it.
I will take a shot at explaining to you why Americans are tired of this. I am tired of paying for everyone else to get things for free when I have to pay for mine. But wait, my money just went to pay for someone else’s! Healthcare should not be free. Just as nothing else should either. You want to be healthy? Then be healthy. Eat healthy, exercise, etc… Some things are beyond your control, I understand that. And for that, it should be your choice to have insurance or not. Your choice to take that chance to die. If you don’t buy insurance, then you take the chance of dying. Period. Free healthcare in other countries is not as great as what some think. Go live in those countries if you want it to be free. I’ll choose to live in the greatest country there is. But my money should pay for my things….not other people’s things.
There are many people who aren’t blessed with good health right from their birth. THEY DIDN’T CHOOSE IT, AS YOU DIDN’T CHOOSE YOUR GOOD HEALTH. For those born with bad health, their closest family relatives also suffer, without access to free or affordable healthcare for them. Health effects everything else, ability to work, to play, to pursuit happiness. “Life, Liberty and the pursuit of Happiness” is a well-known phrase in the United States Declaration of Independence. The phrase gives three examples of the “unalienable rights” which the Declaration says have been given to all human beings by their Creator, and which governments are created to protect.
“Some things are beyond your control, I understand that.” Do you really?
Comparing health care with car insurance is a joke. Driving a car is a privilege not a right. If you have health issues or dealt a bad hand that does not mean everyone else should have to pay for it. Life is hard. Suck it up buttercups. BTW New Hampshire used to not require insurance. And you can buy your auto insurance from many different places around the globe. Cant do that with health care. Obama screwed it all up. Screwed up many business’s. But thats ok because he was the Great One.
He might have been trying to help the situation, but he really screwed up healthcare for people who are middle class and/or have a small business. We have to pay massive premiums for awful coverage now or take a penalty and still have no health insurance! The coverage I used to be able to get covered more, cost less, and had either a $5k or a $10k deductible being called “catastrophic”. They took the label “catastrophic” off, packaged worse coverage for higher cost, and put deductibles at $7k, that sure fixed absolutely nothing. Last year it was about $700/mo for $7,000 deductible insurance, with a 40% co-insurance for most services afterwards!
SO, you think you wouldn’t have bills? Lets apply the 40k you said above here: $7k deductible, then 40% of $33,000 = $13,200. (its much more complicated than this and there are many additional fees not covered etc, but giving you the lowest possible amount). So, $20,200 instead of $40k…sounds good till you realize you also paid $8,400 that year, so $28,600 would have been the bill in an ideal world. IF you ignore all the other fees including copays, co insurance, non coverables, prescription copays, doctor visits not in network (even in the same hospital they get snuck in) etc, which easily would increase it to over $30,000. So maybe you pay 75%, not free coverage like you say. Next, average that on the years without $40k health insurance bills (probably every other year in your life so far on average) and instantly you can see how the worse coverage of Obamacare takes its toll even here…
Now, Trump pretended to do something about it, but instead kept the fines, and worsened coverage with his games of taking funding away and its even worse… Next he’s off to tax the middle class more so he can have another golden toilet with his tax savings…we need to get rid of both the Republicans and Democrats out of health insurance or have a single payer system!
First off health insurance is really not profitable. If it were, I would invest in them. Second, when you show up in the ER with an illness. I have no choice but to treat you regardless of your ability to pay. Your lack of responsible health care choices are forcing a drag on society to treat your illnesses at a significant cost. Your freedom and liberty have never been able to purchase blood pressure medication. The problem is that health care as a whole is to expensive and not sustainable. We need a single payer system like the rest of the free world.
This is the free world. Dumbass or at least it was until abama tried ruining it not Trump has to come in and fix it
My mom and dad filed their taxes last week and were penalized for insurance. They have to pay $1750 even though they both have insurance. My dad is on medicare and my mom has obamacare. She pays $284 a month since they couldn’t afford a higher plan and pays more for dr visits and has a higher deductible. How can she be penalized if she had insurance all of 2016? Is this right? I told them not to pay this until we can have this checked out. Can someone please let me know if this is right. They accountant told them that they would not have to pay anything had it not been for her obamacare insurance. We lost our home in the flood and they were able to claim all of that but still got hit owing a lot because of this stupid obamacare. I think she should send her bill to Mr Obama and say here you pay this.
Everything depends on their filing situation, If they had the required minimum coverage all year, did they qualify for an exemption for relief from a disaster. I am a Tax associate for H&R Block in Indiana. We do perform a free second look if your parents are concerned their taxes was not completed accurately. They can call 317-530-5216 we also do approve online for out of state or out of town clients.
I use HR Block to do my taxes every year. This year there is a section where you can choose not to disclose your coverage status. I want to do that, but I have 1095’s that I presume have been sent to the IRS. Will they flag my return?
Yes if you received the tax credit for your premiums, my husband e-filed through H&R Block without our’s and we received a letter from the IRS requesting the 1095a’s and form 8962. I suggest getting the form ready if you received the tax credit.
I too have a 1095c showing I had health insurance half the year, but I want to choose prefer not to say on my taxes. Should I be worried about a fine for not telling them?
It is never advisable to knowingly put false information on your return. With that being said, you normally don’t need to submit detailed information for 1095-B or 1095-C. The IRS was information for 1095-A for the reason of the premium tax credit they were receiving.
In response to Nope, where do you live that you need to spend $24,000 of a $41,000 income on a mortgage? Can you move and reduce that?
You need to do some serious belt tightening. I figured 28.5 hours times 32 weeks that you work is 912 hours, I can’t feel to sorry for you,
I worked over 2500 hours and only earned about $40,000 luckily my wife earned about the same.
You are living way beyond your means, fix that and start saving money.
Read some MrMoneyMustache to learn how to tighten your belt and see if you can work in the summer to earn more than your unemployment pays.
Re; Obamacare, when It started in 2012 I was paying $5,250 for a family of four, now I’m paying $10,500. A comparable Bronze Obamacare policy
is $16,600. So much for saving me $2,500 a year.
Where are all the people who are getting such great benefits from Obama Care? Apparently not on this website. It’s a scam to get low-income people to pay for the free plans given to no-income people.
Hillary made it sound like tens of millions of people would die if it were repealed.
There is no way I can afford health insurance… even at the lowest Bronze plan level. I make roughly 41K a year so that is the determining factor. What they don’t take into consideration is… my monthly expenses are often more than what I make. My mortgage is $2000 a month. Utilities are $300. Insurance for car $150. Then there’s phone, internet and gas and food and… well, you know, living expenses. But here’s the deal. I teach at the college level however I am not allowed to have more than 28.5 hours a week because otherwise they’d have to insure me. So I’m affected in that way, firstly, and secondly I’m not paid for 4 months during the summer break at which time I collect unemployment (which is roughly $1600 a month) – so I don’t even make my mortgage at that time. And again for 4 weeks in December/January. Even if health insurance were as little as $150 a month, I don’t make enough to afford it 12 months a year.
So… last year’s $600 fee is something I still owe. I still don’t have the money to pay it. But I just found something out. THERE ARE NO LEGAL REPERCUSSIONS IF I DON’T PAY IT OR ANY FUTURE PENALTIES!!! Sure, they could take it out of my federal refund if they choose to, but because I claim the most deductions I can possibly claim on my W2, I don’t receive a refund – I usually owe. There is nothing on the books that can force the IRS to make someone pay the penalty – but you have to look around a little to discover this.
Sure, it’d be great to have health insurance. But I haven’t had it in over 25 years because I can’t afford insurance and I haven’t seen a doctor in that amount of time or longer because I can’t afford an office visit (the average for an uninsured individual is $150). I’m what they call the working poor, I guess, but I’ll be damned if I’m going to pay a penalty because I can’t afford insurance. Hell, I can’t afford the penalty! LOL
I’m not sure where you found out this information, but if you owe the IRS money, they might not come for it at first, but they will come for it eventually. They will send you a letter and add interest and more penalties, including liens and levies. If you owe them anything, it’s best to pay it, even if you need to go on an installment plan. I work in an accounting office, and I have seen some clients that are in terrible situations for not paying their taxes.
It’s pretty cut and dry if you had taken the time to research it, Greg.
Q: What happens if I don’t pay the fee?
A: The IRS will hold back the amount of the fee from any future tax refunds. There are no liens, levies, or criminal penalties for failing to pay the fee.
If that isn’t enough, then you can read the same information here:
I haven’t had a federal refund in quite a few years and don’t anticipate having one in the near future. Therefore, they can only collect this money if I’m due a refund – but cannot levy a lien or affect my credit or seize my property. By the time the repeals are made on the current plan, which is the Republican’s aim, then it will become a moot point and past amounts due will (ideally) be negated. Obamacare has caused me to be underemployed and, as a result, I cannot afford to pay for health insurance that my employer cannot afford to pay for me. If I can’t pay for insurance I shouldn’t be penalized. There is a reason they built into the mandate that no liens or attachments can be imposed. Because it’s WRONG to demand something of a citizen that he isn’t able to – or may even choose NOT to – pay for. Where is the money supposed to come from at the end of the year if during the year he doesn’t have it? Take out a loan to pay for it?
And your analogy about car insurance is flawed. If you can’t afford insurance for a car, then you can simply not own one and not drive. You can’t stop living day to day because you can’t afford health insurance.
There IS a recourse for those who don’t pay. It’s clearly stated in these and several other official healthcare and IRS sites.
Thats really great news if true. I hope it still stands? Trump pretended to do something, but let the penalty stand, and now that he’s moved on to getting himself a bigger tax break and making us middle class people pay more taxes, I doubt he’ll ever get rid of it.
I’m in the same boat. I almost had a heart attack when I read what the 2018 premiums will be. Almost $500 for Bronze (individual) making around 38K in NY. This is the first year I can’t afford insurance in a long time. I HATE that they call it Affordable Care Act. It is FAR from affordable. We are the working poor.
Wow. I have to work 7 days a week if I want to crack $25k, and you make $41k and collect unemployment a third of the year. You’re working poor? I’m not working poor! Why don’t you find cheaper living arrangements and enjoy your four month vacation every year? Where do you live? San Francisco?
My husband has medicare and I have no insurance. I work part time & we can’t afford $800 a month for me to have insurance. Should our penalty be the full amount? What if we file our taxes separately?
If you don’t pay the fee there is nothing that the IRS can do to you… it is not punishable. They can, if they choose – but don’t necessarily always – deduct it from your refund (if you have one coming to you) but the laws are set up so they cannot collect that fee from you if you don’t voluntarily pay it.
The IRS sent me a letter stating that I owe the $695 penalty for not having health insurance; however, I DO have health insurance (Medicaid) and was covered since 2015. Why would they tell me I am being penalized when I’ve had insurance this entire time? All of 2016 was covered by my Medicaid, and I even used my insurance at the doctor’s office. This makes no sense. Now, after doing my taxes, I feel they are withholding my tax return.
Did you get a 1095 B form from Medicaid? That’s proof of coverage and the IRS gets a copy too. Sort of like W2 forms.
My medical has been pending since june 2016 will i be penalized?
This is indeed a socialism government under the Obama to force citizens to pay the government and to take over a private industry. Why force poor people to pay money that they do not have. I think that any government should not be able to tell nor force anyone to go to a certain church, marry a certain person or culture or for someone to go to a certain health care provider, doctor and to have any insurance. This is a form of communism,. To be penalized for being poor is not only unconstitutional but violates the fabric of society in America. All of this money should be paid back to all of the Americans and Green Card Holders ( Legal Immigrants )… I am a american citizen born here in 1954. Where is the compassion for the old, poor, widows and children. I do not think that Mr Obama has read the Bible nor understands about the true meaning of Godly Love. This country was built on christian values and principles. Why deny the rights of the people. I am poor, a senior citizen and i have a bone marrow disease. I can not afford health insurance. I was told 4 years ago that i can die at anytime to have a stroke and i have visited for many months on the cancer ward floor of the hospital. The Oncologist want me to take the radiation pills when the other did not work. I prefer to die like a man with some honor and dignity and not die like a animal. To be poor or a victim of abuse to pay money i do not have does not bother or hurt me as much as if i could not have the freedom and choice to be close to God. No one one will take that away from me. Yes you can take money i do not have when i am in pain and sick and poor . However no one will ever be able to take away my right to be with God and for me to worship God.
I used to pay 600 a month for healthcare. I am a single mom of three.
Today I get an email from group health that said I now have to pay 1,300 a month. WHAT??? wtf?
It more then doubled? Does that mean the health insurance companies are scared people will drop them?
I don’t want to pay insurance at all, much less more now!
I’msure you would rather pay no health insurance so when you or your kids need care, I,the person with insurance, will pay for your care. And I’m sure you will go to the hospital ER, the most expensive place to get care. This is what has been going on for decades and still goes on today. Our only real hope is for a single payer health care system that we all pay for thru taxes. Should have been done years ago but I have no doubt but that is what we will eventually end up with. Let the USA join the rest of the modern world and see health care as a basic human right
did you read the first sentence of Anna23 post? she had an insurance for $600 until Obamacare made her insurance rate went up to $1300. so, why r u blaming it on her?
Did YOU read Anna’s post? Not one place did she ever say Obamacare. In fact, in 2017 my health insurance rate went down.
We have health insurance through our employers. However, when a country mandates it’s citizens have this type of insurance it starts becoming a socialistic union. I’m totally against forcing health insurance on the citizens of our country. I’m hoping President Trump and the Republicans will change the penalty for not having insurance.
Here, here! My husband and I have insurance through his employer. We are grateful, but the fact is that Obamacare requires hard working Americans to pay for insurance for illegal aliens and their often very large families and others who “can’t afford” insurance. I don’t believe that insurance is a RIGHT in this country. I can see the cost to low income families being lower for them but not to the extent of FORCING others to pay for it!
I know I’m going to get “hit” with paying the $695 penalty. Do I simply file my 1040 with Schedule A as I normally would and have the IRS respond with a bill for that penalty amount, or, is there a place/way on the 1040 form to note that I couldn’t afford coverage for 2016?
If the IRS/Obamacare rules say you can afford the coverage, depending what your income is, then you will have to pay the fine. If you meet the low income threshhold to be exempt from having to buy the crap coverage, then you wouldn’t have to pay the fine.
Our, my husband and I, income came to 62K, 9K of that is unemployment…of course we don’t get to actually spend all the gross pay since tons of taxes are deducted, but nobody cares about that, they go by your gross income…so our fine comes to $1042 for not having coverage for 9 straight months last year. Our refund would only be $25 big bucks so we now OWE $1017 because of the O’Shitcare fines. I wish Trump had gotten rid of the fines for 2016. I don’t have $1017 laying around, so it will be a payment plan, yay. No idea if we don’t declare that we didn’t have coverage, that that will change the fact that we owe the fine. Some say the IRS won’t come after you for the fine but no idea if that is true since employers report to the IRS whether you had coverage or not..for each month of the year.
Actually Christine, they take your Adjusted Gross Income, not your Gross income, and yes, there is a difference.
In 2016, my husband made $30,000.00 (after they reduced his salary after working there 30 years) I, his wife, was unemployed all of 2016. The coverage offered from his work was 900 to 1,000 per month. Everything in the marketplace for us was around 1,000 a month. We only make $30,000 a year! I thought if it was more than 8% you wouldn’t have to pay fine.
I did my taxes through TurboTax and that should be correct. You have the option to state that healthcare was unaffordable.
You have the option to apply for a waiver from the Healthcare.gov website, but it takes up to 6 months to get the answer of if they approve the waiver. If they don’t then you owe the money, plus the fines for filing late because you couldn’t file your taxes without the waiver they take 6 months to process. It is a black hole of death trying to get the waiver because the healthcare was not affordable.
In my case, last year there were plans available, but no doctors in my area would accept any plan purchased from the Healthcare.gov website. I would have had to drive more than 4 hours to the nearest doctor that would accept the Healthcare.gov insurance. This would have required a full, unpaid, day off work, plus me paying someone to pick my son up after school, plus the gas there and back. It wasn’t worth it. I lived without insurance last year and just worked out my tax return so that I did not get a refund. The penalty only applies to refunds, if you don’t get a refund, you don’t pay the penalty.
My son only worked for a few months so he didn’t even make like 3,000 for the year. He doesn’t work now but will he have to pay a penalty
You don’t have to file if you make $3000 a year. Ask around, I believe you only have to file if you make over $6000 per year.
I think the fine is against our amendment rights for excessive fines i cant afford health insurance i cant even afford to by food for my family most weeks
I agree, it’s bull crap because all Obama did was ruin this world worse than it was already ruined.. Not everyone can afford health insurance! I started my job at UPS a year ago so my insurance didn’t even kick in until Dec of 2016 so I had insurance for 1 month out the year. If we can’t afford health insurance than what makes them think we can afford a fine that is an extreme amount. Let’s just take the little bit of money that people do get, but peeps that actually have money get help!
After losing my job with SoCalGas Co (and 50+% of my ability to earn a living) because an illness caused by my job, I ended in a situationwhere I could not afford a place to live or health care in Southern California,I had to seek refuge in my native Finland. There I was entitled to medical care. My status as a permanent resident alien (green card since 1975) limited my stay there to less than year at a time.
Now I am charged penalty for not having health insurance.
I also cannot afford the 700.00 plus a month to have horrible coverage! It is insane to penalize for that. We all knew this would be a disaster. Comrade Obama Is/was nothing but a crook!
Hello to all. I have worked all my life and in order to ‘buy’ ObamaCare, it would have cost me 702.00 a month for this and I could not afford it. Now in 2017 I have had ins. since 9-01-16. Does this mean I have to pay a penalty on something that I could not afford to buy in the first place? Is this really fair? Do you think the President will change the tax laws and would it do me any good to wait awhile because I can not afford to pay 600.00 for the penalty.
You are definitely RIGHT. I just paid for insurance named Molina. It is one of health insurance from Obama-Scare ( with me, it never and ever care peoples). When I went to Dr (first location), he said He can not accept this insurance. Then I need to call them and they changed. After I did fully check up, and when I bought that Molina, it say free o
I apply the Marketplace Health insurance for my spouse but they didn’t offer coz my employer offer for that. but if i took insurance from employer ( as a state employee ) that charge me 600/ month. So, If i don’t take any for wife who will be panelize . What the hell policy. Note/ she never meet doctor coz good health
That’s why I don’t have no health insurance because I can’t afford it. Government penalize us that ridiculous..people who don’t work can get a government help but people who work hard cannot get help what a twisted policy…having a job could be a prequalifications to get approved a government health insurance.. no job no help
That doesn’t make any sense for you to say no job, no help. There are also people that are sickly that can’t work and need aid or are on disability. Do you really think those people shouldn’t get the help they need? They shouldn’t all be put into the same category as a lazy able bodied person that just doesn’t want to work. I am pretty sure those people won’t qualify for any help anyway unless they can prove there is some reason they can’t work. In the first place, a penalty for no health ins. is the most rediculous thing the American people should ever be subjected to. Just another way for our government to line their pockets and steal from us. Obama care is a joke within it’s self!
YEa I agree, these women go n have all these kids knowing they don’t have a job or any money to afford a bunch of kids but they get more help then anyone. The peeps that actually work for a living, not wanting to b on welfare or so can’t get any kind of help.. SMH, don’t make no sense cause peeps that don’t wanna work or do anything but live on welfare should b penalized!
Any chance trump might drop the penalty for 2017 taxes? Or at least refund it to us in July 2017?
Always a chance. In his proposed tax changes for 2017, https://savingtoinvest.com/trump-tax-plan-cuts-and-changes-in-2017-2018-and-beyond/ , there is an aim to do this. But will require House Republican support to repeal Obamacare and permanently drop the individual mandate penalty.
Being fined for not having medical insurance could be understandable if my fine was vested in some sort of medical coverage for me but it’s not. So I don’t no how this is anything less than extortion. I work my ass off just to get fined so all the bums can have health insurance,do you see what’s wrong with this picture.
My girlfriend did not have insurance for exactly 3 months. Will she have to pay a penalty?
Ok,I’m a US citizen my wife just got her Greencard in November of 2016. She’s got denied Medicaid because she didn’t have a social security number that year, couldn’t put her on my insurance plan because she didn’t have a ssn. We had to wait a whole year(2015-2016)
after I paid all the fees for her Greencard. We went to file our taxes,come to find out we’re being penalized for her not having health insurance When she didn’t even qualify for health insurance, because she didn’t have a social security number. How is this possible???.. First they turn her down because she’s illegal, as soon as she gets her green card. They tell us we have to pay a penalty for not having health insurance in 2016.
I would think since she was not a legal citizen until November, when she got her greencard that would qualify as a life change and you should have been able to get insurance for her then. Since the time she became legal, if she did not have insurance they can charge a prorated penalty if you did not get her insurance for the rest of the year, but I also think there is a 3 month grace period, so in effect, you should be able to file an exemption and not have to pay the penalty. I would check with a tax expert…
2016 we’ve paid or insurance. 2017 my husband’s income went down and we applied for Medicaid. He has a restricted medicaid and i have a 400 mthly deductible. Is this qualified as having insurance for next year’s taxes without being penalized?
Yes, it is a qualification, you are exempt. My son is on disability Medicaid and he is also exempt.
I believe if you are a veteran (I.e. You have access to VA if you need it) you are “covered” as far as tax filing, correct?
Yes…see graphic in post. If you are covered by VA health programs you are exempt from penalty.
my son is a veteran. due to a job change & not being offered insurance on his hire date he went without insurance for three months (had to wait for his first 90 days to be up at his new job). he was fined $800 when he filed his 2015 taxes last spring. when you only make $10/hr and the only household income, there should NOT be such fines!
He should have VA benefits. If he has that he is exempt.
My son and I have insurance but my husband did not qualify through the state so he hasnt had any since May, how much would he be penalized?
Someone please inform me when the IRS releases the updated tax penalty amount for filing in 2017.
Per health care.gov site, the 2017 fees are the same as 2016. The fee is calculated 2 different ways – as a percentage of your household income, and per person. You’ll pay whichever is higher. See the table in the post for details.
that’s blatant extortion! completely unethical. praying president trump will stop these fines/taxes.
I read somewhere that if you only had insurance for 3 months out of the whole year that you would not owe any penalty. Is that true?
I was under the impression that if you are without insurance for more than three consecutive months then you have to pay a penalty.
Not true. The penalty is proportionate to the number of months you are not covered. The 3 month short coverage gap exemption provides that no shared responsibility payment will be due for a once-per-year gap in coverage that lasts less than three months. But this is mainly for US citizens residing abroad and meet IRS residency criteria
That 3 month coverage gap doesn’t cover those that have lost their job and coverage and are looking for work? Seems unfair… There are a lot of people that have lost their jobs and coverage, me included… I’m screwed…