The ACA Individual Mandate
The Affordable Care Act individual mandate requires that everyone have qualified health insurance. Individuals can have qualifying coverage through their employer, or through an individual policy. For instances of qualifying coverage, visit our page on Healthcare Reform. In any case, non-compliance of the ACA may result in a tax penalty for individuals. For example, read below.
Penalty: If you do not have qualifying health insurance, the tax penalty will be $695 for adults. Additionally, the penalty is $347.50 for each child. However, the maximum family penalty is the greater of 2.5% of income, or three times the adult penalty, which is $2,085. Accordingly, your penalty will be applied on your annual tax return.