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What are the tax penalties for individuals and how will they be assessed?

For each month that you did not have coverage, you will be assessed a penalty equivalent to 1/12 of the yearly penalty.

The federal government has set the following yearly tax penalties for individuals who do not have coverage:

  • For 2014, 1% of your gross household income over the federal income tax filing threshold, or $95 per individual – whichever is greater.
  • For 2015, 2% of your gross household income over the federal income tax filing threshold, or $325 per individual – whichever is greater.
  • For 2016, 2.5% of your gross household income over the federal income tax filing threshold, or $695 per individual – whichever is greater.

Tax penalties also cannot exceed the national average cost of buying a Bronze plan.

The law provides exemptions for certain individuals, including those below a certain income and those who are without coverage for fewer than three months.