With tax reform enacted on the finish of 2017, there have been questions across the necessities to have well being care protection. Underneath tax reform, efficient for tax yr 2019 the tax penalty for not having medical insurance is eradicated. Taxpayers will now not be required to pay a tax penalty for not having medical insurance. People with earnings over the federal poverty stage are nonetheless required to have 2018 well being care protection or they could be topic to a tax penalty after they file their 2018 taxes. All the exemptions (based mostly on earnings, non secular beliefs, and citizenship) are nonetheless in place.
When you obtain medical insurance protection in a professional medical insurance plan bought from Healthcare.gov or by a State Market, you could have obtained an Superior Premium Tax Credit score or subsidy that can assist you pay on your 2021 medical insurance, which was based mostly in your projection of your 2021 family earnings. In case your precise earnings for the tax yr is greater than what was projected once you utilized for medical insurance within the Well being Insurance coverage Market, then you’re required to pay again a portion of the surplus Advance Premium Tax Credit score or subsidy that you simply obtained once you file your taxes.