Tax Penalty (Individual Mandate)

A fee that people without health coverage may need to pay. The fee in 2018 is $695 or 2.5% of your income, whichever is greater.

Uninsured people won’t have to pay the fee if they:

  • Are uninsured for less than 3 months of the year
  • Have very low income
  • Do not file a tax return because their income is too low
  • Earn 138% of the Federal Poverty Guidelines (FPG) or less ($16,753 or less for an individual; $34,638 for a family of four) and live in a state that hasn’t expanded MO HealthNet eligibility
  • Are a member of a federally recognized Indian tribe
  • Have religious objections to health insurance
The tax penalty (individual mandate) continues to be law for 2017 and 2018

The Tax Cuts and Jobs Act, signed at the end of 2017, is set to end the tax penalty (individual mandate) for health coverage starting in 2019. It does not affect this rule for health coverage in 2017 and 2018.

The bottom line:

  • For 2017, if you didn't have coverage, you may still have to pay a penalty on your 2017 taxes (due in April of 2018).
  • For 2018, if you don't have coverage, you may still have to pay a penalty on your 2018 taxes (due in April of 2019).