The Tax Cuts and Jobs Act of 2017 did not repeal the penalty for individuals having health insurance for 2018. There is still a requirement when you file your 2018 income tax return to disclose whether or not you and your dependents were covered by qualifying health insurance during all 12 months of 2018. If you did not have coverage for any period during the year, you will be subject to a penalty unless you qualify for an exemption. This penalty varies depending on your particular situation but is calculated as the greater of $695 per person or 2.5% of your household income. Make sure that your tax return includes the correct information related to your health insurance coverage. For 2019, there is not a penalty for individuals whom do not have health insurance.
As always, consult with your tax professional at Ketel Thorstenson about these or other tax matters because each situation is different. Don’t navigate the difficult and ever changing tax codes and legislation on your own. Ketel Thorstenson CPAs and tax professionals receive advanced training and continuing education all year long to keep our service on the forefront of the tax industry. Call us today for guidance on tax planning, tax return preparation, and/or Tax Reform (the Tax Cuts and Jobs Act) affects or questions.