Calculate Health Insurance Penalty 2017
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Reviewed by Calculator Editorial Team
In 2017, the Affordable Care Act imposed a penalty for individuals and families who did not have qualifying health insurance coverage. This calculator helps you determine your 2017 health insurance penalty based on your income and household size.
How the Penalty is Calculated
The 2017 health insurance penalty is based on your income and household size. The penalty amount is calculated using the following formula:
Penalty Formula
Penalty = (Monthly Premium × 12) × (Income Percentage - 3.5%)
Where:
- Monthly Premium = Standard monthly premium for a bronze-level health plan in your state
- Income Percentage = Your income divided by the federal poverty level for your household size
The penalty is calculated monthly and then multiplied by 12 to get the annual penalty. The calculation is based on your income relative to the federal poverty level, with a 3.5% threshold.
Important Notes
- The penalty applies to individuals and families who are not exempt from the individual mandate.
- You must have qualifying health insurance coverage for the entire month to avoid the penalty.
- The penalty is paid to the IRS when you file your tax return.
2017 Penalty Amounts
The penalty amount varies based on your income level relative to the federal poverty level. Here are the 2017 penalty brackets:
| Income Level | Penalty Amount |
|---|---|
| 100% - 133% of federal poverty level | $695 per adult |
| 133% - 200% of federal poverty level | $824 per adult |
| 200% - 300% of federal poverty level | $1,390 per adult |
| 300% - 400% of federal poverty level | $2,080 per adult |
| 400% or more of federal poverty level | $2,770 per adult |
The federal poverty level for 2017 was $12,140 for an individual and $24,680 for a family of four.
Who Pays the Penalty
The penalty applies to:
- Individuals who are U.S. citizens or residents
- Individuals who are at least 18 years old
- Individuals who are not exempt from the individual mandate
- Individuals who do not have qualifying health insurance coverage for the entire month
Exemptions from the penalty include:
- Having qualifying health insurance coverage for the entire month
- Having a hardship exemption
- Having a religious exemption
- Having a financial hardship exemption
Penalty Exemptions
If you qualify for an exemption, you will not be subject to the penalty. Make sure to document your exemption when filing your tax return.
How to Pay the Penalty
The penalty is paid to the IRS when you file your tax return. You can pay the penalty in one of the following ways:
- By including the penalty amount on your tax return
- By paying the penalty directly to the IRS
- By making estimated tax payments throughout the year
If you do not pay the penalty, the IRS may assess additional interest and penalties.
Penalty Payment Deadline
The penalty is due when you file your tax return. If you file your return by the deadline, you will not be subject to additional interest or penalties.
Penalty Examples
Here are some examples of how the penalty is calculated for different income levels:
Example 1: Single Individual
Income: $20,000 (165% of federal poverty level)
Penalty: $824 per adult × 12 months = $9,888
Example 2: Family of Four
Income: $40,000 (163% of federal poverty level)
Penalty: $824 per adult × 4 adults × 12 months = $32,736
Example 3: High-Income Individual
Income: $80,000 (653% of federal poverty level)
Penalty: $2,770 per adult × 12 months = $33,240