You are required to pay tax penalty if:
- you do not have qualifying health care coverage (referred to as Minimum Essential Coverage (MEC))
- you do not apply for and receive an exemption.
The amount of the penalty is 1/12 of the annual penalty for each month that you do not have qualifying coverage.
Tax penalty (also referred to as a fine) for not having coverage in 2015 has increased from 2014 as shown below. Penalties are subject to a maximum amount.
| 2014 | 1% of your yearly household Modified Adjusted Gross Income (MAGI) above the amount at which you’re required to file taxes, or $95 per person ($47.05/child)-whichever is greater. |
| 2015 | 2% of your yearly household Modified Adjusted Gross Income (MAGI) above the amount at which you’re required to file taxes, or $325 per person ($162.50/child)-whichever is greater. |
| 2016 | 2.5% of your yearly household Modified Adjusted Gross Income (MAGI) above the amount at which you’re required to file taxes or $695 per person ($347.50/child)-whichever is greater. |