Learn about the Affordable Care Act tax penalty.
The Affordable Care Act put a fee in place for individuals and families who do not have qualifying health coverage for more than three or more consecutive months out of the year. This fee is called the health insurance mandate. The fee is calculated in one of two ways:
If you're using the first method of calculating your fee, don't count the income below the yearly tax filing threshold ($10,150 for individuals and $20,300 for couples filing jointly). If you're calculating per person, you only need to pay for people in your household who did not have health insurance.
If you have coverage for part of the year, you will pay 1/12 of the annual fee for each month you or a member of your household does not have coverage. There is no fee for a short gap in coverage of one or two months.
You may qualify for an exemption from the health insurance mandate. Some reasons for an exemption include your financial status, membership in a federally recognized tribe, or membership in a recognized religious sect.