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jdgilbe1
New Member

IRS not enforcing Obamacare penalty anymore

 
1 Best answer

Accepted Solutions
GeoffreyG
New Member

IRS not enforcing Obamacare penalty anymore

[UPDATED APRIL, 2017]

This statement (or question) is partly true.  Please allow us to explain further for the benefit of everyone.

At the present time (April, 2017) the underlying statutory law of the Affordable Care Act (a.k.a. Obamacare) providing tax penalties for not having health insurance; the system of exemptions to not having health insurance; and the tax credit system set up for purchasing health insurance through an authorized marketplace state health care exchange, all remain in place, and have not been repealed.

However, what has recently changed is an executive (i.e., Presidential) order directing the IRS to process individual income tax returns, where the heath insurance coverage box is left unchecked.  This is different than the situation which existed prior to the order, and different than last year, where the IRS was sending such tax returns back to taxpayers as being "incomplete."  You can read about the TurboTax interpretation of President Trump's executive order, and the penalties for not having health insurance for the 2016 tax year, both at the following (2) TurboTax webpages:

https://ttlc.intuit.com/questions/3662774

https://ttlc.intuit.com/questions/2581044


In addition, this area of the tax law is currently in a great deal of flux and uncertainty, so please keep monitoring the situation.  It seems likely that there will be further significant changes to heath care and insurance, especially as it impacts the tax code and penalties / credits, going forward.

For the moment, the above information accurately describes the present state of the relevant tax law and rules (as of April, 2017).

Thank you for the opportunity to present this information.

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19 Replies
SweetieJean
Level 15

IRS not enforcing Obamacare penalty anymore

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mnielebe
New Member

IRS not enforcing Obamacare penalty anymore

Can you give us an update on the current status of this issue?  We want to know if we can blame Intuit if we leave the insurance coverage box unchecked and end up still penalized by the IRS for not providing evidence of Health Insurance coverage for 2017.
SweetieJean
Level 15

IRS not enforcing Obamacare penalty anymore

SweetieJean
Level 15

IRS not enforcing Obamacare penalty anymore

mnielebe
New Member

IRS not enforcing Obamacare penalty anymore

So as-of now, the penalty still exists, and "not checking" the box will not exempt you from the penalties for failing to obtain qualified coverage based on what I'm reading today 11/13/17?
SweetieJean
Level 15

IRS not enforcing Obamacare penalty anymore

I am just another user, and simply follow the news. Are you asking about 2017 returns, which we won't be filing for several weeks yet?  It could change yet again.
mnielebe
New Member

IRS not enforcing Obamacare penalty anymore

Yes 2017.
SweetieJean
Level 15

IRS not enforcing Obamacare penalty anymore

We just have to keep watching the news. Besides the current Tax Reform proposals, there may be tax "extender" bills for year end that cover various issues.
TaxGuyBill
Level 9

IRS not enforcing Obamacare penalty anymore

So far, nothing has really changed since 2014.  The penalty still applies.

The only slight change is that for 2017 tax returns, the IRS says they will NOT accept an e-filed tax return (and mailed returns will be held) unless you indicate if you have health insurance or not.
<a rel="nofollow" target="_blank" href="https://www.irs.gov/tax-professionals/aca-information-center-for-tax-professionals">https://www.irs....>
jasonbonaqua
New Member

IRS not enforcing Obamacare penalty anymore

Has there been any change on this? Can this question be omitted from current returns?
GeoffreyG
New Member

IRS not enforcing Obamacare penalty anymore

[UPDATED APRIL, 2017]

This statement (or question) is partly true.  Please allow us to explain further for the benefit of everyone.

At the present time (April, 2017) the underlying statutory law of the Affordable Care Act (a.k.a. Obamacare) providing tax penalties for not having health insurance; the system of exemptions to not having health insurance; and the tax credit system set up for purchasing health insurance through an authorized marketplace state health care exchange, all remain in place, and have not been repealed.

However, what has recently changed is an executive (i.e., Presidential) order directing the IRS to process individual income tax returns, where the heath insurance coverage box is left unchecked.  This is different than the situation which existed prior to the order, and different than last year, where the IRS was sending such tax returns back to taxpayers as being "incomplete."  You can read about the TurboTax interpretation of President Trump's executive order, and the penalties for not having health insurance for the 2016 tax year, both at the following (2) TurboTax webpages:

https://ttlc.intuit.com/questions/3662774

https://ttlc.intuit.com/questions/2581044


In addition, this area of the tax law is currently in a great deal of flux and uncertainty, so please keep monitoring the situation.  It seems likely that there will be further significant changes to heath care and insurance, especially as it impacts the tax code and penalties / credits, going forward.

For the moment, the above information accurately describes the present state of the relevant tax law and rules (as of April, 2017).

Thank you for the opportunity to present this information.

kayleeabby3468
New Member

IRS not enforcing Obamacare penalty anymore

So has the healthcare penalty been done away with yet or is the IRS finding ways around this order to still charge the penalty, despite not answering the questions on the tax form about having or not having healthcare?
SweetieJean
Level 15

IRS not enforcing Obamacare penalty anymore

The penalty has not been done away with.
<a rel="nofollow" target="_blank" href="https://www.irs.gov/tax-professionals/aca-information-center-for-tax-professionals">https://www.irs....>
SweetieJean
Level 15

IRS not enforcing Obamacare penalty anymore

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