Did you know that the health care law (also known as the Affordable Care Act, or ACA) requires almost all Americans to have health insurance? To enforce this requirement, the government created a tax penalty for those who don't sign up for health insurance.
So, if you’re not currently insured, what does this mean for you? The amount of the penalty is calculated in one of two ways, and you’ll pay whichever is higher:
If you don't sign up for a plan by January 1, you may have to pay a tax penalty every month you go without coverage. The penalty is taken directly from your tax return. A tax professional can tell you exactly how this penalty might affect you.
Keep in mind that there are some exceptions for those who can't afford coverage or only have a short gap in coverage. Some members of certain religious groups and qualified Native American tribes are also exempt from the coverage requirements and will not be required to pay a penalty. To learn more about these exceptions, you can visit HealthCare.gov.