About the IRS Tax Penalty

Written by Access Health CT | Published March 2nd, 2021 | Updated January 21st, 2021

  • For Tax Year 2020, the penalty or fee for not having health insurance coverage is $0.
  • For Tax Years 2018 and earlier, individuals without coverage during those years may be subject to a penalty. This penalty is also known as the “Individual Responsibility Payment.”

If you did not have healthcare coverage in 2018, the Internal Revenue Service (IRS) may charge a penalty when you file your federal tax return. The State of Connecticut does not charge a penalty for not having healthcare coverage.

The IRS reviews the number of months out of the tax year that you didn’t have coverage, and charges a penalty based on those months if they exceeded three months total.

The penalty amount can vary. The IRS calculates the total amount for the year that you owe for months you were not covered. You will pay 1/12th of the total amount for the year for each month you and/or members of your tax household were not covered.

The easiest way to avoid a penalty is to get coverage. Many types of coverage count to help you avoid a penalty from the IRS. These include plans offered through your employer, plans available through Access Health CT and other individual market plans, HUSKY (Medicaid), Medicare, the Children’s Health Insurance Plan (CHIP or HUSKY B), VA Care or Tricare.