Calculating the payment
For 2016 and 2017, the full payment is $695 per person, $347.50 for each child, up to a maximum of $2,085 — or 2.5% of your household income, whichever is higher.
For tax year 2019 and 2020 returns
Under the Tax Cuts and Jobs Act, the amount of the individual shared responsibility payment is reduced to zero for months beginning after December 31, 2018.
The “percentage amount” calculation was 2.5% of your income over the year’s filing threshold for tax years 2016 through 2018. 5 The filing threshold was how much you could earn in that year before you were required to file a tax return.
Enacted in December 2017, the Tax Cuts and Jobs Act (TCJA) reduced the shared responsibility payment to zero for tax year 2019 and all subsequent years. For January 1, 2019 and beyond, taxpayers are still required by law to have minimum essential coverage or qualify for a coverage exemption.
The California Individual Shared Responsibility Penalty is either 2.5% of gross household income exceeding California’s filing threshold or a flat penalty per family member.
How much does the IRS charge you for not having health insurance?
The penalty for not having coverage the entire year will be at least $750 per adult and $375 per dependent child under 18 in the household when you file your 2021 state income tax return in 2022. A family of four that goes uninsured for the whole year would face a penalty of at least $2,250.
Will there be a penalty for no health insurance in 2019?
In 2017 and 2018, the penalty increases to the greater of $695 per adult and $347.50 per child, plus COLA (“Cost of Living Adjustment”), or 2.5% of your taxable household income minus the federal tax-filing threshold. In 2019, there will be no more penalty.
Under the new law, California residents who do not have coverage for themselves and their dependents in 2020, and who do not otherwise qualify for an exemption, will pay an Individual Shared Responsibility Penalty when they file their 2020 California income tax returns in 2021.
If you are not required to file a federal income tax return for a year because your gross income is below your return filing threshold, you are automatically exempt from the shared responsibility provision for that year and do not need to take any further action to secure an exemption.
The employer shared responsibility payment is a tax penalty imposed on businesses with 50 or more full-time equivalent employees if the businesses don’t offer affordable health insurance benefits, or if the benefits offered do not provide minimum value.
What is the income threshold for ACA exemption?
The Covered California income guidelines take into consideration your household income and size. In 2021, if you are a single person earning less than $47,000 per year, you qualify for government assistance. A family of four with an annual household income less than $97,200 qualifies for government assistance.