2018 Tax Penalty for No Health Insurance Calculator

What is the 2018 Health Insurance Penalty?

The 2018 health insurance penalty, also known as the individual shared responsibility payment, is a tax imposed by the Affordable Care Act (ACA) on individuals who do not have qualifying health coverage for certain months of the year. The penalty is designed to encourage Americans to obtain health insurance to help reduce the cost burden on the healthcare system.

In 2018, the penalty was $695 per adult and $347.50 per child under the age of 18. The penalty was applied to each eligible individual in the household who did not have qualifying health coverage for at least three months of the year.

How to Calculate the 2018 Penalty

Calculating the 2018 health insurance penalty involves determining your household size, income level, and whether you had qualifying health coverage for at least three months of the year. Here's a step-by-step guide to calculating the penalty:

1. Determine your household size: Count the number of individuals in your household, including yourself and any dependents.
2. Check your income level: The penalty is based on your income level. In 2018, the penalty was applied to individuals with incomes between 100% and 400% of the federal poverty level.
3. Verify your health coverage: Determine if you had qualifying health coverage for at least three months of the year. Qualifying coverage includes employer-sponsored insurance, individual market insurance, Medicare, Medicaid, TRICARE, or CHIP.
4. Calculate the penalty: If you are eligible for the penalty, multiply the penalty amount per person by the number of eligible individuals in your household.

Use the calculator on the right to estimate your 2018 health insurance penalty based on your household size and income.

Who is Eligible for the 2018 Penalty?

The 2018 health insurance penalty was applied to individuals who met certain eligibility criteria. Here are the key requirements for eligibility:

• Income level: The penalty was applied to individuals with incomes between 100% and 400% of the federal poverty level. In 2018, the federal poverty level for a single person was $12,140, and for a family of four was $24,280.
• Age: The penalty was applied to individuals aged 18 to 64 who did not have qualifying health coverage.
• Residency: The penalty was applied to U.S. citizens and residents who were legally present in the United States.
• Coverage requirement: The penalty was applied to individuals who did not have qualifying health coverage for at least three months of the year.

If you meet these eligibility criteria, you may be subject to the 2018 health insurance penalty.

How to Pay the 2018 Penalty

If you are subject to the 2018 health insurance penalty, you can pay the penalty in several ways:

1. With your 2018 tax return: You can include the penalty as an additional tax on your 2018 tax return. The penalty will be added to your tax liability and you will owe additional taxes.
2. With your 2019 tax return: If you did not file your 2018 tax return, you can include the penalty as an additional tax on your 2019 tax return. The penalty will be added to your tax liability and you will owe additional taxes.
3. Through the IRS: You can pay the penalty directly to the IRS. The penalty will be added to your tax account and you will owe additional taxes.

It's important to note that the penalty was repealed in 2019, so you cannot pay the penalty after that year.