What is the Tax Penalty and Will I Be Required to Pay It? – 1
The individual mandate in the Affordable Care Act healthcare plan dictates that every American must have health insurance. A tax penalty will be levied against those who do not enroll in qualifying health coverage. This tax, which is based on household income and family size, is paid when you file your Federal Tax Return for the year in which you opted not to carry coverage.
There are some exceptions from the tax penalty including:
- People between jobs with no insurance for up to three months
- Those with religious objections
- Illegal immigrants
- Members of Indian tribes
If you are not exempt, and still choose to go without health insurance coverage (or if you buy a non-ACA approved plan), you will be required to pay a fee.
Tax Penalties for People Without Health Insurance
For families who qualify for a subsidy, purchasing health insurance is often less expensive than paying the tax penalty. Speak with an Agent today to determine the right course of action for you and your family.