LATEST UPDATE: People are frantic about filing their 2016 taxes and for good reason. The Obamacare fine remains the law of the land which puts accountants in a very tough position. Due to the IRS’s recent stance, many filers expect to avoid any penalty despite the provision still being on the books. Mass confusion to say the least!
President Donald Trump has vowed to repeal and replace the Affordable Care Act. An executive order has been issued to, “minimize the unwarranted economic and regulatory burdens of the Act.” However, the law has NOT been repealed.
Nevertheless, it certainly appears as though the President is serious about eliminating the fine. Stay tuned….
Use this Obamacare fine calculator to estimate your 2016 ACA penalty. The fine, if any, may be higher than 2015 since the Shared Responsibility Payment under the individual mandate of the Affordable Care Act allows for yearly increases.
The amount will be either 2.5% of your modified adjusted gross income (MAGI) or a flat rate amount, whichever is higher. You’ll need to know your 2016 income to calculate the 2016 penalty. Any IRS fine won’t be payable until you file a tax return, this year, later in 2017.
Be sure to check if you qualified for an exemption, to avoid incurring an Obamacare fine, if you were without health insurance for 3+ months during 2016.
Above is the combined Obamacare fine for everyone included on your tax return. If the number is zero then you don’t owe anything!
Please Note the Following:
1. You will need to calculate fine amounts separately if some individuals on your return were without health insurance for different time-frames during 2016.
2. If you had a dependent child who turned 18 years old, sometime in 2016, then any Obamacare penalty attributed to them will need to be calculated separately.