2017 Penalty for No Health Insurance Calculator

The 2017 penalty for not having health insurance is a tax penalty under the Affordable Care Act (ACA). If you didn't have qualifying health coverage for part of the year, you may owe a penalty based on your income and household size. This calculator helps you determine your potential penalty for the 2017 tax year.

How the 2017 Penalty Works

The Affordable Care Act established a shared responsibility provision that requires most individuals to have qualifying health insurance. For the 2017 tax year (covering 2016 plan years), the penalty was $695 per adult and $347.50 per child under the age of 18.

Important: The penalty was only applied if you were not covered by a qualifying health plan for at least one full month of the year. If you had coverage for the entire year, you would not owe a penalty.

The penalty was calculated based on your income level and household size. There were income thresholds where the penalty was reduced or eliminated for low-income individuals.

How to Calculate Your Penalty

To calculate your 2017 penalty, you'll need to know:

Your total household income for 2017
Your household size (number of people in your tax unit)
Whether you had qualifying health coverage for the entire year

The penalty is calculated as follows:

Penalty Amount = (Base Penalty × Number of Uncovered Months) × (1 - Income Adjustment Factor)

Where:

Base Penalty = $695 per adult + $347.50 per child
Number of Uncovered Months = 12 if uncovered all year, or fewer if partially covered
Income Adjustment Factor = 0% for incomes below the threshold, up to 100% for incomes above the threshold

For the 2017 tax year, the income thresholds were:

Household Size	2017 Income Threshold
1 person	$11,550
2 people	$23,700
3 people	$35,850
4 people	$47,900
5+ people	$59,950

2017 Penalty Amounts

The base penalty amounts for 2017 were:

$695 per adult (18+ years old)
$347.50 per child (under 18 years old)

For example, a single person with no health insurance for the entire year would owe $695. A family of four with no health insurance for the entire year would owe $695 × 4 = $2,780.

If your income was above the threshold, the penalty was reduced proportionally. For example, if your income was $30,000 (above the $23,700 threshold for a 2-person household), the penalty would be reduced by 25% (($30,000 - $23,700)/($30,000 - $11,550)).

How to Pay the Penalty

If you owe a penalty, you would pay it as part of your 2017 federal income tax return. The penalty is reported on Form 8965 and added to your tax liability.

Note: The penalty was not paid through the Health Insurance Marketplace. You would pay it through your regular tax filing process.

If you couldn't pay the full amount, you might qualify for an installment plan through the IRS.

Frequently Asked Questions

Who was required to pay the 2017 penalty?

Most individuals and families were required to have qualifying health insurance or pay the penalty. Exceptions included certain groups like those with religious objections, hardship exemptions, or those who couldn't afford coverage.

How was the penalty calculated for partial coverage?

If you had coverage for part of the year but not all 12 months, the penalty was prorated based on the number of months without coverage. For example, if you had coverage for 6 months, you would owe half the annual penalty.

Was the 2017 penalty different for different states?

No, the penalty amounts and income thresholds were the same nationwide. However, state-specific rules might apply to qualifying health plans.

Could I get help paying the penalty?

Yes, you might qualify for an installment agreement with the IRS if you couldn't pay the full amount at once. You could also apply for an exemption if you had a qualifying reason.

Was the 2017 penalty different from other years?

Yes, the penalty amounts increased each year. For 2017, the base penalty was $695 per adult, while in 2018 it increased to $695 per adult and $347.50 per child.