How much is the penalty for no insurance?
Residents without MCC health insurance face monthly penalties. The penalties add up each month without health insurance, and must be paid at tax filing time. Short gaps in coverage (up to three months) are allowed without a tax penalty.
Penalties are based on ˝ the cost of the lowest-priced Commonwealth Choice plan available to you. The penalties vary by age and income, based on percentages of the Federal Poverty Guidelines (FPG). People with incomes at or below 150% of the FPG do not have to pay a penalty if uninsured.
The 2012 tax year penalties are:
Income and Age 150.1-200% FPG 200.1-250% FPG 250.1-300% FPG Above 300% FPG
Age 18-26 Above 300% FPG
Age 27+
Tax penalty $19 per month
$228 per year $38 per month
$456 per year $58 per month
$696 per year $83 per month
$996 per year $105 per month
$1260 per year (See What are the penalties? from the Health Connector and Individual Mandate Penalties for Tax Year 2012 from the DOR.)
You can use the FPG income and household size categories below to see which penalty category would apply to you.
(For example, if your income is greater than the 150% FPG income amount and less than or equal to the 200% FPG income amount shown below for your household size, your tax penalty category would be "150.1-200% FPG.")
Health Insurance Tax Penalty Income Categories - Tax Year 2012
(based on Federal Poverty Guidelines effective January 2012)
Household size Annual Income (% of Federal Poverty Guidelines)
150% FPG 200% FPG 250% FPG 300% FPG
1 $16,764 $22,344 $27,936 $33,516
2 $22,704 $30,264 $37,836 $45,396
3 $28,644 $38,184 $47,736 $57,276
4 $34,584 $46,104 $57,636 $69,156
5 $40,524 $54,024 $67,536 $81,036
6 $46,464 $61,944 $77,436 $92,916
7 $52,404 $69,864 $87,336 $104,796
8 $58,344 $77,784 $97,236 $116,676
each extra person +$5,940 +$7,920 +$9,900 +$11,880
(See 2012 MassHealth Income Standards and Federal Poverty Guidelines)
If you owe a penalty, you will calculate the amount when you complete Schedule HC of your state income tax return.
To estimate your penalty, see Estimate Your 2011 Tax Penalty on the Commonwealth Connector web site.
People who cannot find affordable health insurance or who qualify for a religious or hardship exemption or waiver do not have to pay a penalty. See Do I have to buy health insurance? for more information.
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