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Posted 4/3/18 / Affordable Health Insurance

No Health Coverage? Here’s How Your Tax Penalty Will Be Calculated

If you could afford to buy health insurance under the Affordable Health Care Act (ACA), also known as Obama Care, buy chose not to buy it, you could owe a fee or penalty when you file your taxes this year.

Assuming you don’t have insurance through your work, you’ll owe a fee for any month you, your spouse, or your tax dependents don't have it.

You pay when you file your federal tax return for the year you don’t have coverage.

For the 2017 tax year, the fee for not having coverage is calculated in two ways, and you owe whichever is higher:

Paying the fee:

If you buy an individual plan outside the ACA Marketplace, you won’t be charged a fee as long as the plan meets the standards of qualifying health coverage under the health care law.

You can buy qualifying health coverage directly from an insurance company, from an online seller, or through an agent or broker. Before you buy, be sure to find out if the plan you’re interested in qualifies. “Short-Term” and “Temporary” plans do not qualify and will not keep you from paying the penalty.

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