If you can afford health insurance but choose not to buy it, you must pay a fee known as the individual responsibility payment.
The fee in 2014 is 1% of your yearly income or $95 per person for the year, whichever is higher. The fee increases every year. In 2016 it's 2.5% of income or $695 per person, whichever is higher.
If you're paying under the $95 per person method, in 2014 the payment for uninsured children is $47.50 per child. The most a family would have to pay under this method in 2014 is $285.
You make the payment when you file your 2014 taxes, which are due in April 2015.
If you're applying for an exemption based on: coverage being unaffordable; membership in a health care sharing ministry; membership in a federally-recognized tribe; or being incarcerated:
You have 2 options:
Note: If you get an exemption because coverage is unaffordable based on your expected income, you may also qualify to buy catastrophic coverage through the Marketplace. This may be more affordable than your other options.
You can fill out an exemption application using the appropriate form below. See instructions to help you fill out an exemption application.
If your income will be low enough that you will not be required to file taxes:
You don’t need to apply for an exemption. This is true even if you file a return in order to get a refund of money withheld from your paycheck. You won’t have to make the shared responsibility payment.
If you have a gap in coverage of less than 3 months, or you're not lawfully present in the U.S.:
You don’t need to apply for an exemption. This will be handled when you file your federal tax return.