Under the Affordable Care Act, Americans without insurance must pay a penalty when they file their federal tax returns. But recent efforts to repeal the ACA have caused some confusion. KBIA’s Michaela Tucker spoke with University of Missouri Extension Professor Andrew Zumwalt to clarify, before this year’s tax season is over.
When filing taxes, Americans can fall into three categories for the ACA tax penalty. If you have health insurance, there is no penalty. If you don't have insurance, you pay the penalty. The third category is you have a penalty, but are exempt from the payment. Zumwalt said exemptions include having income below the poverty level, being incarcerated, living outside the country and having unaffordable coverage.