Obamacare Penalty

There is a box on the tax return asking if you had qualified health insurance coverage during 2016. If you indicate that you didn't have coverage every month you will be subject to significant penalties up to as much as 2.5% of your adjusted gross income less an amount based on your filing status. President Trump signed an executive order on his first day directing federal agencies to exercise all authority and discretion to reduce the burdens of the Affordable Care Act (ACA). Now because of the executive order the IRS is allowing tax returns to be processed without a response to the health care coverage question. If you don't want to answer the question you now have that option. You may receive follow up questions from the IRS as taxpayers are still required to follow the ACA law.