May 2, 2018
Thanks to a little-known change made in April by the Trump administration to the exemptions provision of the Affordable Care Act (ACA), millions of Americans will have the opportunity to escape having to pay the ObamaCare penalty imposed on those who are not enrolled in a “qualifying” health insurance plan.
In December 2017, the Republican-led Congress passed the Tax Cuts and Jobs Act, and in the legislation, they included a provision effectively eliminating the ObamaCare penalty. However, the fine won’t be eliminated until 2019, which means those Americans who currently aren’t enrolled in a health insurance plan will be forced to pay the penalty when they file their 2018 taxes in 2019.
Under the ACA, Americans not enrolled in a qualifying health insurance plan, as defined by the federal government, must pay a penalty of $695 per adult or 2.5 percent of household income, whichever is higher.
IRS tax data show more than 6.6 million filers were required to pay the ObamaCare penalty in 2015, the most recent year for which data are available. Those penalized paid a total of more than $3 billion for not being enrolled in a health insurance plan. Lower-income and working-class Americans were hit particularly hard by the fine; the adjusted gross income of 36 percent of the 6.6 million people required to pay the penalty was only $10,000 to $25,000.
This article was posted: Wednesday, May 2, 2018 at 7:38 am