What is the 2017 Penalty for Lack of Health Insurance?
The 2017 Penalty for Lack of Health Insurance: What You Need to Know
In the United States, the Affordable Care Act (ACA) requires individuals to have health insurance or pay a penalty. The penalty for not having health insurance varies depending on the year and the individual's income. In this article, we will focus on the2017 penalty for lack of health insuranceand what you need to know about it.
What is the 2017 penalty for lack of health insurance?
The penalty for not having health insurance in 2017 is calculated two different ways – either as a percentage of your household income or as a flat amount per person in your household. The penalty is the greater of the two amounts.
For 2017, the penalty for lack of health insurance is 2.5% of your household income, or $695 per adult and $347.50 per child (up to a maximum of $2,085 per household), whichever is higher.
Who is exempt from the penalty?
Not everyone is required to have health insurance, and some people are exempt from the penalty. You may be exempt if:
- You are uninsured for less than three consecutive months of the year
- The cheapest health insurance available to you would cost more than 8.16% of your household income
- You are a member of a recognized health care sharing ministry
- You are a member of a federally-recognized Indian tribe
- You are incarcerated
- You have a hardship that makes it difficult for you to obtain health insurance
How is the penalty enforced?
The penalty for lack of health insurance is enforced by the Internal Revenue Service (IRS) when you file your taxes. If you do not have health insurance and do not qualify for an exemption, you will be required to pay the penalty when you file your tax return.
It is important to note that the penalty for lack of health insurance will increase in future years. In 2018, the penalty will be 2.5% of your household income or $695 per adult and $347.50 per child (up to a maximum of $2,085 per household), whichever is higher. It is also possible that the ACA may be repealed or replaced in the coming years, which could change the penalty for lack of health insurance.
Insurance and Financial Planning
While the penalty for lack of health insurance can be costly, it is important to remember that having health insurance is also important for your health and financial security. Health insurance can help you pay for medical expenses and protect you from financial ruin in the event of a serious illness or injury.
When it comes to financial planning, insurance can play a critical role in protecting your assets and providing for your loved ones. Life insurance, disability insurance, and long-term care insurance are all important types of insurance to consider as part of your overall financial plan.
It is important to work with a trusted insurance advisor to determine the types and amounts of insurance that are right for you and your family. By taking a proactive approach to insurance and financial planning, you can protect yourself and your loved ones from financial uncertainty and build a brighter financial future.