Obamacare Penalty

The Obamacare penalty will still be applicable for 2018 tax returns. If you don't have qualified health insurance (the individual mandate) in 2018, you will be subject to substantial penalties. In 2019, the penalty goes to 0 so you will not be forced to have health insurance coverage.

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.

Another Obamacare Penalty

This one is a business killer. Beginning July 1, 2015, any small business that directly reimburses their employees for health insurance or medical bills can be hit with a $100 penalty per day per employee up to $500,000. This penalty can hit employers with as few as two employees. The purpose of the penalty is to force employers to set up company group health insurance plans or drive employees to the health exchanges. It is beyond belief that employers are being punished for trying to help their employees with health insurance. I haven't heard of any enforcement actions yet on this issue, but watch out.