Insurance Tax Penalty

Under the Trump tax reform people were lead to believe that the penalty for not having health insurance was done away with. You might want to check with a tax professional before mailing off your tax filing.

Upon review of the changes, the tax penalty is set to be eliminated in 2019. It still applies for 2017 and 2018. If you had plans to drop your health insurance policy to save the premiums, you could incur the tax penalty.

It still may behoove you, financially, to drop the insurance plan. Latest reports are that the premiums are set to increase as they have for the past years.

The penalty for 2017 is $695 per adult to a maximum of $2,085 or 2.5% of household income whichever is greater. The penalty for children is half the adult rate.