Is there still a tax penalty for not having health insurance?
Up until 2018, all individuals were required to have health insurance under the ACA. That was known as the individual mandate. Beginning on January 1, 2020, the individual mandate has been eliminated, which means the penalty for not having health insurance is now $0.
Some state penalties remain
While there is no longer a federal penalty, five states and the District of Columbia still have an individual mandate, and charge a penalty to taxpayers who don’t have health insurance. The mandate and penalty still apply for residents of California, Massachusetts, New Jersey, Rhode Island, Vermont, and the District of Columbia.
If you live in any other state, there’s no longer a penalty to worry about.
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