The examples below show the 2 ways the fee for not having health insurance is calculated and compared. They are only illustrations.

IMPORTANT: You’ll find out your fee only when you complete your 2016 federal tax return. (Also note the percentage-of-income examples below are based partly on 2014 information, the most recent figures available. Your 2016 fee will be based on updated information for 2016.)

Example 1: Single individual with $40,000 income

Jim, who is unmarried with no dependents, doesn’t have qualifying health coverage for any month of 2016. His household income in 2016 is $40,000.

  • Per-person fee: $695
  • Percentage-of-income fee:
    • $40,000 (2016 household income) minus $10,150 (the tax filing threshold for individuals - for 2014, the most recent figure available) = $29,850
    • 2.5% of $29,850 = $746.25

The annual national average premium for a Bronze plan is $2,448 (also based on 2014 figures).

  • $746.25 (Jim’s percentage-of-income fee) is less than $2,448 (the maximum percentage-of-income fee), so the maximum doesn’t apply.

  • $746.25 (Jim’s percentage-of-income fee) is higher than $695 (his per-person fee).

So Jim’s 2016 fee would be $746.25. He’d pay it when he files his 2016 federal income tax return, which is due in April 2017.

If Jim had qualifying health coverage for any month of 2016, he’d owe 1/12 of the annual fee for each month he’s uninsured.

Example 2: Married couple with 2 children, $70,000 income

Eduardo and Julia are married and have two children under 18. No family member has qualifying health coverage for any month of 2016. Their 2016 household income is $70,000.

  • Per-person fee: $2,085 (2 adults at $695 each, plus 2 children at $347.50 each)
  • Percentage-of-income fee:
    • $70,000 (2016 household income) minus $20,300 (the tax filing threshold for married couples filing jointly - for 2014, the most recent figure available) = $49,700
    • 2.5% of $49,700 = $1,242.50

The annual national average premium for a Bronze plan that covers the family is $9,792 (also based on 2014 figures).

  • $1,242.50 (the family’s percentage-of-income fee) is less than $9,792 (the maximum percentage-of-income fee), so the maximum doesn’t apply.
  • $2,085 (the family’s per-person fee) is higher than $1,242.50 (the family’s percentage-of-income fee).

So Eduardo and Julia’s 2016 fee would be $2,085. They’d pay it when they file their 2016 federal income tax return, which is due in April 2017.

If Eduardo and Julia’s family had qualifying health coverage for any month of 2016, they’d owe 1/12 of the annual fee for each month they’re uninsured.

Learn more about the individual shared responsibility payment from the Internal Revenue Service.