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What is the tax penalty for not carrying health insurance in 2016?

The open enrollment to apply for health insurance ends Janaury 31st 2016, there are still some Californians who decides not to carry health insurance . Here are is an overview of the tax penalty for 2016 .

What happened if I do not pay health insurance in 2016?

● 2016 tax penalty:

the annual individual responsibility payment is the greater of
○ 2.5%of the taxpayer’s household income that is above the tax return filing threshold for the taxpayer’s filing status, or
○The taxpayer’s flat dollar amount, which is$ 695 per adult and $347.50 per child, limited to a family maximum of $2085.
● However the total payment amount is capped at the cost of the national average premium for a Bronze level hath plan available through the Marketplaces in 2016
 After 2016, the payment is adjusted for inflation.
For more information, please visit the Internal Revenue Service (IRS) website
.
use this handy tax penalty calculator:
http://taxpolicycenter.org/taxfacts/acacalculator.cfm
To see if you qualify for the Federal Subsidy to pay portion of your health insurance
premium for 2016 use this helpful tool .
You need to know your annual modified gross income of your 1040 tax form of 2012. (line item
37 and 38 please check with your tax advisor )
http://healthreform.kff.org/subsidycalculator.aspx?source=QL
The calculations above represent the amount of the payment for not having health insurance
coverage for the entire year. Individuals will owe 1/12thof the annual payment for each month
they (or their dependents) do not have coverage and are not exempt. Individuals without
coverage for less than three consecutive months during the year may qualify for the short
coverage gap exemption and will not have to make a payment for those months. The short
coverage gap exemption only applies to the first coverage gap during a year.

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