Prior to 2019, if you failed to maintain adequate health insurance coverage, you could be assessed a penalty on your tax return. This penalty was based on your income and could be quite expensive if you went two or months without health care coverage.
According to healthcare.gov, starting in 2019 the “Individual Shared Responsibility Penalty” is going away. This was a change made by the Tax Cuts and Jobs Act.
Keep in mind, some states still have an individual mandate in place for state taxes. If you live in Massachusetts, New Jersey, Vermont or Washington D.C. and don’t maintain adequate coverage for you and your family, you still may have to pay a tax penalty with your state tax return.< Back
Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
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