Many people are unaware that there is a health insurance tax penalty if they do not have health insurance. The health insurance tax penalty can be quite costly, and the amount to pay will depends on your income and family size. This blog post will discuss ways to avoid the health insurance tax penalty.
What Is The Tax Penalty?
The tax penalty is a fee imposed by the federal government if you do not have health insurance. The fee is based on different factors, including your income and family size. The fee increases each year, and it is important to note that it is imposed on a per-person basis. So, if you are married and both you and your spouse do not have health insurance, you will owe two penalties.
How To Avoid It
There are several ways to avoid a tax penalty. The first way is to get a health plan through your job. If your employer offers health insurance coverage, try to enroll through your job to avoid tax penalties. Another way to avoid the tax penalty is to buy a plan through the marketplace.
You can also qualify for an exemption from the tax penalty if you’re unable to afford coverage or have a hardship that prevents you from getting coverage. If you don’t have health insurance and don’t qualify for an exemption, you’ll need to pay the tax penalty.
Another is to purchase an individual health insurance policy. If you’re not sure whether you’re liable for a tax penalty, you can consult with a tax professional.