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 However, the law has NOT been repealed.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 2017 ACA penalty. The fine, if any, is enforced as a result of the Shared Responsibility Payment under the individual mandate of the Affordable Care Act.
Like 2016, the amount is based on either 2.5% of your modified adjusted gross income (MAGI) or a flat rate amount, whichever is higher. You’ll need to estimate your 2017 income to calculate the 2017 penalty. Any IRS fine won’t be payable until you file a return in 2018.
Be sure to check if you will qualify for an exemption, to avoid incurring an Obamacare fine, if you will be without insurance in 2017.
Above is the combined Obamacare fine estimate 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 will be without health insurance for different time-frames during 2017.
2. If you have a dependent child turning 18 years old sometime in 2017 then the Obamacare penalty attributed to them will likely need to be calculated separately.