Health Care Tax Penalty Calculator
If you have health insurance, you don't have to worry about paying a penalty. If you don't have coverage for 3 or more months in 2014, you may be subject to paying a tax on your 2014 federal income tax return due April 2015. TaxACT's Health Insurance Tax Penalty Calculator estimates the tax penalty amount for not having health insurance in 2014.
Your penalty amount is determined by the number of uninsured people in your household and your household's taxable income. The penalty is capped at an amount it would cost to purchase a certain level of insurance in your state's health insurance marketplace. Penalty amounts will be prorated to only cover the number of months you and your family are uninsured. Although the penalty is assessed by month, this calculator assumes your household is uninsured for the entire year and under the age of 65 (those 65 and older likely qualify for a government health care plan like Medicare).
Enter the information below to estimate your 2014 penalty amount.
Based on the information you provided, your estimated 2014 health care tax penalty is $0.00
Remember, the penalty is the greater of 2 amounts:
- a set amount per person: $95 per adult (18 & older) + $47.50 per dependent (17 & younger) - up to $285, or
- 1% percentage of your taxable income, up to $5,000 for 1 adult and $12,500 for a family*
Your amounts are:
1. Penalty based on adults & children in your household: $0.00
2. Penalty on 1% of adjusted household income: $0.00
The penalty would be paid on your 2014 federal tax return due April 15, 2015. Penalty amounts will increase in 2015 and again in 2016. After 2016, the penalty will increase annually by the federal cost-of-living adjustment.
Situations in which you may be exempt from paying the penalty:
- Financial hardship
- Religious objections
- American Indians
- Were without coverage for less than 3 months
- Undocumented immigrants
- Incarcerated individuals
- The lowest cost plan option exceeds 8% of income
- Incomes below the tax filing threshold