What is the 2017 penalty for lacking health insurance?
Paul RyanAs an English insurance consultant, I am happy to provide a detailed answer to the question, "What is the 2017 penalty for lacking health insurance?"
Firstly, it's important to understand that the Affordable Care Act (ACA) requires most Americans to have health insurance or face a penalty. This penalty is also known as theindividual shared responsibility payment. However, the penalty amount has changed over the years.
For 2017, the penalty for lacking health insurance is the greater of two amounts: either 2.5% of your household income or $695 per adult and $347.50 per child under 18. The maximum penalty for a family is $2,085. It's important to note that the penalty is based on your income and the number of months you or your family members didn't have insurance coverage.
Now, let's discuss some important points to keep in mind regarding the penalty for lacking health insurance:
Penalty exemptions: Some people may qualify for an exemption and not have to pay the penalty. These exemptions include some religious groups, members of certain Native American tribes, and individuals experiencing financial hardship.
Enforcement: The penalty for lacking health insurance is enforced by the Internal Revenue Service (IRS) when you file your federal income tax return. If you owe a penalty, it will be deducted from any refund you are owed. If you don't pay the penalty, the IRS may take legal action to collect it.
Changing penalty amounts: It's important to note that the penalty for lacking health insurance has changed over the years. For example, in 2016, the penalty was 2.5% of income or $695 per person, whichever was greater. It's possible that the penalty amount could change again in the future.
In conclusion, it's important to have health insurance and avoid the penalty for lacking coverage. If you're unsure about which insurance plan is right for you, consult with an insurance professional who can provide guidance and help you make an informed decision.
When it comes to insurance, there are many options available to help you protect your family and your finances. Some important considerations include life insurance, disability insurance, and long-term care insurance. It's important to work with an insurance professional who can help you assess your needs and choose the right coverage.
Finally, it's important to regularly review your insurance coverage to ensure it still meets your needs. Life changes such as marriage, the birth of a child, or a change in employment can all impact your insurance needs. By staying informed and making regular adjustments to your coverage, you can ensure that you and your family are protected no matter what life throws your way.
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