Your clients are still required to have full year minimum essential health coverage or an exemption from health coverage for the upcoming tax year. Any taxpayer without coverage or an exemption will still face the Shared Responsibility Payment on their 2018 tax return. Many taxpayers believe that this penalty had been repealed beginning this year. The Kaiser Family Foundation Health Tracking Poll in April found that 21% of taxpayers thought they were not required to have coverage any longer. You can help your clients avoid a large penalty by informing them now.
For the 2017 tax year, the Shared Responsibility Payment was the greater of 2.5% of all household income that was more than the filing threshold, or $695 for each adult and $347.50 for each child without coverage or an exemption. These amounts are expected to change later this summer for the 2018 tax year due to inflation.
Starting January 1, 2019, the Shared Responsibility Payment for individuals without health coverage or an exemption will drop to $0. Taxpayers will still be required to report health coverage, or any lack thereof, but will not be penalized.