We all know the tax penalty for not having health insurance was a concern. You may be wondering, is it today? Fortunately, the answer to that question is no.
The federal tax penalty for not being enrolled in health insurance was eliminated in 2019. However, those that received a penalty for not having health insurance in 2018 will still have to pay the penalty on your 2019 tax forms.
The 2018 penalty was $695 for adults and $347.50 for children or 2% of your annual income, whichever is more. The penalty was designed to protect both people from skipping out on health insurance and not being able to pay off their medical bills.
States Can Still Enforce Penalties
You should be aware that while the penalties at the federal level are no longer in effect, that doesn’t mean your state cannot enforce penalties of their own. Fortunately, Missouri is not one of these. However, if you live in New Jersey, Massachusetts, Vermont, or District of Columbia, you are subject to potential penalties. Please be sure to take the time to research them.
We hope this helps answer some questions for you for the 2019 tax year!