As part of the government’s plan to ensure that as many Americans as possible have access to health care and appropriate insurance, an Individual Penalty was initiated that applied to any household that could afford to buy health insurance, but chose not to do so. The fee is owed for any time period in which you, your spouse, and your dependents don’t have the minimum essential health coverage. This fee is collected by the government on your federal tax return, pertaining to any years in which you didn’t have minimum coverage.
There are instances in which individuals may not have to pay the individual penalties associated with insurance coverage, but these are based on certain life events, financial status, group membership or other criteria.
The individual penalty for not having health insurance is calculated in two ways. The calculator below will be able to perform these calculations for you. The penalty is based on a percentage of your household income, or per person living in the home. The fee extends to the higher number, and the amount increases each year with inflation. The maximum amount for the penalty is $2085 when the penalty is based on individuals, and the maximum amount, when based on percentage of income, is the yearly premium amount for the Bronze plan sold through the Health Insurance Marketplace, which changes on a yearly basis as well.
If an individual is unemployed, there are some instances in which he or she may not have to pay the fee. If you have questions or concerns about the Individual Penalty related to Health Insurance in the United States, contact Cook Martin Poulson, P.C. today. We are here to answer any questions you may have or help you determine penalties that apply to you and your family. We continue to provide up-to-date information to our clients, so check back regularly.
Enter the current year first. Then enter your filing status (1 for single and 2 for married). In the next box enter the number of uninsured adults, followed by the number of uninsured children in the next box. In the final box enter your average gross income. Then click the “calculate” button to see your individual penalty.
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