What is the health insurance tax penalty?

1 min. readlast update: 07.06.2023

The health insurance tax penalty, also known as the individual shared responsibility payment, was a provision under the Affordable Care Act (ACA) that imposed a penalty on individuals who did not have qualifying health insurance coverage. The penalty was intended to encourage people to obtain health insurance and ensure a broad and balanced risk pool within the insurance market.

However, it's important to note that as of 2019, the federal penalty for not having health insurance has been effectively reduced to zero dollars through legislation. This means that there is currently no federal tax penalty for individuals who do not have health insurance.

It is worth mentioning that some states have implemented their own individual mandates and penalties for not having health insurance. 

It's always advisable to consult with a tax professional or refer to the official IRS website for the most up-to-date and accurate information regarding health insurance tax penalties or any changes in tax regulations related to health insurance coverage.

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