Tax Penalty for Not Having Health Care Coverage


Those persons without health plan coverage must pay a tax penalty to be included on their 2014 tax return if they do not have appropriate coverage for 2014

  • The penalty is paid for each individual that did not have coverage
  • That could include the taxpayer, the taxpayer's spouse on a joint return, and the dependents claimed on the return.

The amount of the penalty for any month is equal to the lesser of the monthly national average premium for bronze level coverage (in 2014, $204 per individual), or 1/12th of the greater of a flat amount or a percentage of the individual's household income.  The flat amount is generally $95 per individual, up to a maximum of three times that amount ($285) per family.  The percentage of household income is 1% of the excess of household income over the individual's tax return filing threshold.  These dollar amounts are phaseed in and adjusted for inflation after 2016.


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