Based on income alone, you should have the penalty, Check the list below for exemptions.
The individual mandate penalty applies only to adults who can afford health insurance. If, according to the state affordability schedule, you have no affordable options, you won't be penalized. There's no penalty if your income is at or below 150% of the federal poverty level because there is no premium and therefore no penalty.
To appeal a penalty, you have to show that you experienced any of the following hardships during the tax year:
- You were homeless, more than 30 days late in rent or mortgage payments, or received an eviction or foreclosure notice.
- You received a shut-off notice, were shut off, or were refused the delivery of essential utilities (gas, electric, oil, water, or telephone).
- Your essential expenses increased significantly and unexpectedly due to the direct consequences of:
- Domestic violence
- The death of a spouse, family member, or partner with primary responsibility for child care, where that spouse, family member, or partner shared household expenses with you
- The sudden responsibility for providing full care for yourself, an aging parent or other family member, including a major, extended illness of a child that required a working parent to hire a full-time caretaker for the child, or
- A fire, flood, natural disaster, or other unexpected natural or human-caused event causing substantial household or personal damage for the individual filing the appeal.
- Your financial circumstances were such that the expense of buying health insurance would have caused you to experience a serious deprivation of food, shelter, clothing or other necessities.
- Your family size was so large that relying on the affordability schedule (see Table 3: Affordability in Schedule HC) to determine how much you could afford to pay for health insurance is inequitable.
- During the year, you bought health insurance that didn't meet MCC requirements because that is all that your employer offered, and you felt that your circumstances prevented you from buying other insurance that met the requirements.
See TIR 20-1: Individual Mandate Penalties for Tax Year 2020.
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