2019 Tax Penalty for No Health Insurance Calculator

The 2019 tax penalty for not having health insurance is a complex calculation that depends on your income, filing status, and whether you had a qualifying exemption. This calculator helps you determine your potential penalty amount based on the 2019 tax year rules.

How the 2019 Health Insurance Penalty Works

The Affordable Care Act (ACA) imposes a penalty on individuals and families who don't have qualifying health insurance coverage. For the 2019 tax year, the penalty was calculated as a percentage of the federal poverty level.

Key points:

Penalty applies to individuals and families with incomes above the subsidy threshold
No penalty if you had qualifying health insurance or a qualifying exemption
Penalty amount varies by household size and income level
Maximum penalty for 2019 was $1,340 per adult and $670 per child

The penalty was phased in based on income level, with higher penalties for those earning more than 133% of the federal poverty level. For example, a single filer with income between 100% and 133% of the poverty level would pay a smaller penalty than someone earning between 133% and 400% of the poverty level.

Calculation Method

The 2019 health insurance penalty was calculated using the following formula:

Penalty Amount = (Income - Poverty Level) × Penalty Rate

Where:

Income = Your taxable income for 2019
Poverty Level = Federal poverty level for your household size
Penalty Rate = 1% for incomes between 100% and 133% of poverty level, 2% for incomes between 133% and 200%, 2.5% for incomes between 200% and 300%, and 3% for incomes above 300% of poverty level

The federal poverty level for 2019 was:

Household Size	Poverty Level (2019)
1 person	$12,140
2 people	$16,360
3 people	$20,580
4 people	$24,800
5 people	$29,020

Worked Examples

Let's look at two examples to understand how the penalty is calculated.

Example 1: Single filer with $25,000 income

For a single filer with $25,000 income:

Poverty level: $12,140
Income above poverty level: $25,000 - $12,140 = $12,860
Penalty rate: 2% (since $25,000 is between 133% and 200% of poverty level)
Penalty amount: $12,860 × 2% = $257.20

Example 2: Family of 4 with $50,000 income

For a family of 4 with $50,000 income:

Poverty level: $24,800
Income above poverty level: $50,000 - $24,800 = $25,200
Penalty rate: 3% (since $50,000 is above 300% of poverty level)
Penalty amount: $25,200 × 3% = $756

How to Avoid the Penalty

There are several ways to avoid the 2019 health insurance penalty:

Purchase qualifying health insurance: This includes individual market plans, employer-sponsored plans, Medicare, Medicaid, or the Children's Health Insurance Program (CHIP).
Qualifying exemptions: You may qualify for an exemption if you had a hardship, were incarcerated, were a dependent child under 26, or were a resident of a state with a federal waiver.
Hardship exemption: If you couldn't afford coverage and had a reasonable attempt to get it, you might qualify for an exemption.
Short coverage period: If you had coverage for at least 3 months of the year, you might qualify for a reduced penalty.

Note: The rules for avoiding the penalty changed in later years, so if you're filing for a different tax year, you should check the specific rules for that year.

Frequently Asked Questions

Who is eligible for the 2019 health insurance penalty?

The penalty applies to individuals and families who are eligible for a premium tax credit but didn't have qualifying health insurance coverage for the entire year. This typically includes those with incomes between 100% and 400% of the federal poverty level.

How is the penalty calculated for 2019?

The penalty is calculated as a percentage of the amount by which your income exceeds the federal poverty level. The percentage increases as your income rises above 133% of the poverty level.

What counts as qualifying health insurance for 2019?

Qualifying health insurance includes individual market plans, employer-sponsored plans, Medicare, Medicaid, and CHIP. You must have had coverage for the entire year to avoid the penalty.

Can I get an exemption from the 2019 penalty?

Yes, you may qualify for an exemption if you had a hardship, were incarcerated, were a dependent child under 26, or were a resident of a state with a federal waiver. You must meet specific criteria to qualify.

How do I report the 2019 health insurance penalty on my tax return?

You'll need to report the penalty on Form 8965, Health Coverage Exemptions, and attach it to your tax return. The penalty will be shown as an additional tax on your return.