Will Form 2220 Penalized 2023-2024

Today, we will be talking about the individual mandate federal tax reform legislation that was signed into law on December 22nd, 2017. This legislation contains a provision that eliminates the individual mandate penalties starting in the year 2019. Some people have questions about how the elimination of the individual mandate penalty may impact their health coverage. In this video, I will try to address these questions and help you understand how the elimination of the individual mandate penalty may affect you. Let's start with the basics. What does this mean? Well, the only coverage-related change made by the new law is that the individual mandate tax penalty will no longer be in effect beginning in 2019. The health insurance coverage, including financial assistance subsidies and tax premiums, will not change in the year 2018. The individual mandate penalty remains in effect for 2018 coverage, which means you will need to buy insurance if you want to avoid paying a penalty in the year 2018. So, what does the elimination of the individual mandate tax penalty mean for consumers overall? For 2018, individuals who can afford health insurance but choose not to enroll for coverage will be required to pay a penalty. The penalty for the year 2018 remains pretty much the same as in 2017. It is the greater of $695 for each adult and $347.50 for each child, up to $2,085 per family per year, or 2.5 percent of the tax filer's annual household income minus the federal tax filing threshold for 2017. The same amounts apply for individuals who do not buy insurance because it would be unaffordable for them in 2018. They may not be required to pay a penalty if they file for an exemption from the penalty. Please watch our video about the tax penalty and exemptions. Here...