Update on the Health Care Mandate

The Individual Shared Responsibility Payment no longer exists at the federal level. What does this mean for you? In prior years, taxpayers had to pay a fee or were penalized on their taxes if they could afford health insurance, but did not purchase it or did not have a coverage exemption. Now for the 2019 tax season, that penalty has been reduced to zero meaning that you are no longer penalized for not having health insurance on your federal tax returns.

You won’t have to pay a penalty for not having health insurance or a coverage exemption on your federal tax returns, however, you still may be required by the state on your tax return depending on the state that you live in. Be sure to check with your accountant to determine if your state requires you to have to have health insurance or coverage exemption.

If you still owe fees and penalties from tax years 2018 and before, the IRS will offset them with your refund. By law, the IRS cannot use liens and levies to collect payments from the Individual Shared Responsibility Payments.

https://www.irs.gov/affordable-care-act/individuals-and-families/questions-and-answers-on-the-individual-shared-responsibility-provision