Affordable Care Act Tax Penalty

The Affordable Care Act Tax Penalty Isn’t dead yet. On December 22 2017, President Donald Trump signed a tax bill that repeals the Affordable Care Act’s tax penalty. The penalty won’t go away until 2019, and that means you still will owe the IRS if you don’t have health insurance in 2018. Under the Affordable Care Act, most people must have health insurance or pay a tax penalty. For 2018, the penalty is $695 per adult (up to a family maximum of $2,085), or 2.5 percent of household income, whichever is greater. The penalty for children is half the adult rate ($347.50).