IMPORTANT UPDATE: President-elect Donald Trump has vowed to repeal and replace the Affordable Care Act. That said, it’s likely the 2016 Obamacare penalty will be enforced by the IRS. Fines for futures years are much less certain. 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 estimate your 2016 income to calculate the 2016 penalty. Any IRS fine won’t be payable until you file a tax return in 2017.
Be sure to check if you will qualify 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.