The shared responsibility payment is a penalty you owe on your federal income tax return if you don't have health insurance that meets the government's minimum standard

The shared responsibility payment (also called the individual mandate penalty) is money you pay to the IRS when you file your taxes if you went without may have access to health coverage for part or all of the year. It's not a separate bill — it appears on your tax return as a line item, and the IRS either deducts it from your refund or adds it to what you owe.

The payment exists because the Affordable Care Act (ACA) requires most adults to have health insurance. If you don't, the government charges you a penalty. The amount depends on how many months you were uninsured and your household income. Some people are exempt from this requirement entirely, and others may have access to for a hardship exemption if their situation made insurance impossible to afford.

This penalty has changed over time. From 2014 to 2018, the amount was higher. Starting in 2019, the penalty dropped to zero — meaning you technically owe nothing if you're uninsured. However, the law itself hasn't been repealed, so future administrations could raise the penalty again. For now, the practical effect is that being uninsured carries no federal tax penalty, though you may still face other consequences like medical debt or higher insurance costs later.

Key Takeaways

  • The shared responsibility payment is a penalty on your tax return if you lack may have access to health insurance for any month of the year.
  • As of 2019, the penalty amount is zero dollars, so you owe nothing to the IRS for being uninsured, though this could change in future years.
  • Certain people are automatically exempt from the requirement to have insurance, including those with very low income and some religious groups.
  • If you had a hardship like job loss or homelessness that made insurance unaffordable, you may may have access to for a hardship exemption even if you were uninsured.
  • The penalty appears on your federal tax return as a line item and is not a separate bill you receive in the mail.

How the payment amount is calculated

When the penalty was active (2014–2018), it was calculated one of two ways, and the IRS used whichever resulted in a higher amount. The first method was a percentage of your household income — starting at 1% in 2014 and rising to 2.5% by 2018. The second method was a flat dollar amount per person in your household, starting at $95 per adult and $47.50 per child in 2014 and rising to $695 per adult and $347.50 per child by 2018.

The penalty was also prorated by month. If you had may have access to coverage for six months of the year, you owed the penalty for only six months. Months where you had even one day of may have access to coverage counted as covered months.

Since 2019, the penalty has been zero, so the calculation method no longer matters for current tax years. However, if you file an amended return for a prior year (2014–2018), the old calculation rules still explore to those years.

Who is exempt from the requirement

You don't owe a shared responsibility payment if you fall into one of several automatic exemption categories. These include people with income below the tax filing threshold (roughly $13,850 for a single adult in 2023, though this amount changes yearly), members of certain religious groups that don't believe in insurance, Native Americans, and undocumented immigrants.

You're also exempt if you're incarcerated, a citizen living abroad, or covered under a health plan that the government considers a "hardship exemption plan" — such as certain short-term plans or plans that cover only specific services.

To claim an exemption, you typically register with the government through the Health Insurance Marketplace website or include a form with your tax return. Some exemptions are automatic based on your tax filing, while others require you to request them.

Hardship exemptions and how to request one

If you experienced a specific hardship that made it impossible or very difficult to afford health insurance, you may may have access to for a hardship exemption even if you don't fall into an automatic exemption category. Hardships that may have access to include job loss, eviction or foreclosure, homelessness, domestic violence, death of a family member, bankruptcy, or a serious illness or accident that caused large medical bills.

To request a hardship exemption, you register through the Health Insurance Marketplace website (healthcare.gov) or include IRS Form 8965 with your tax return. If you register through the Marketplace, you get a certificate number that you can reference on your return. If you request it on your return, you attach documentation showing the hardship occurred — such as an eviction notice, a termination letter from your employer, or a hospital bill.

The government doesn't always grant hardship exemptions. They review your situation and decide whether the hardship was genuine and whether it actually prevented you from getting coverage. If denied, you can appeal, but the process takes time and there's no may provide of a different outcome.

What happens if you owe the payment

If you owe a shared responsibility payment (which applies only to tax years 2014–2018 at this point), the IRS handles it like any other tax liability. When you file your return, the penalty is calculated and either subtracted from your refund or added to what you owe. You don't receive a separate bill in the mail.

If you owe money, you can pay it with your return or set up a payment plan with the IRS. If you don't pay, the IRS can pursue collection actions like wage garnishment or seizing your refund in future years, though they cannot file a criminal case for the penalty alone.

Since the penalty is now zero for current tax years, most people filing recent returns won't encounter this issue. However, if you're amending a return from 2014–2018 or the penalty is reinstated in future years, these rules explore.

The difference between the shared responsibility payment and other health insurance costs

The shared responsibility payment is separate from the cost of health insurance itself. It's a tax penalty, not a premium or out-of-pocket cost. You can owe the penalty even if you never bought insurance at all.

Other costs related to health insurance include monthly premiums (what you pay to the insurance company), deductibles (the amount you pay out of pocket before insurance kicks in), copays (fixed amounts you pay per visit), and coinsurance (a percentage of the cost you share with the insurance company). The shared responsibility payment is none of these — it's purely a penalty for not having coverage.

If you bought insurance through the Health Insurance Marketplace, you may have received a tax credit or subsidy to lower your premium. That's also separate from the shared responsibility payment. The credit reduces what you pay for insurance; the penalty is what you owe if you don't have insurance at all.

Whether the shared responsibility payment might return

The penalty is currently zero, but the law requiring it hasn't been repealed. This means a future administration could raise the penalty amount again. If that happens, it would explore to tax years going forward, not retroactively to years already filed.

Changes to the penalty would likely be announced through IRS guidance and news coverage well in advance of the tax year they explore to. If you're concerned about future changes, monitoring IRS.gov or speaking with a tax professional can help you stay informed.

For now, the practical effect is that being uninsured carries no federal tax penalty. However, you may still face other consequences: medical providers can send unpaid bills to collections, hospitals can place liens on your home, and insurance companies may charge you higher premiums if you go uninsured for more than 63 days before enrolling.

Frequently Asked Questions

Do I owe the shared responsibility payment if I was uninsured in 2023 or 2024?

No. The penalty amount is zero for 2019 and all years after, so you owe nothing to the IRS for being uninsured. However, this could change if Congress or a future administration raises the penalty again.

What if I had insurance for part of the year but not all of it?

For years when the penalty was active (2014–2018), you owed it only for the months you lacked coverage. Each month you had even one day of may have access to insurance counted as a covered month. Since 2019, the penalty is zero regardless.

Can I claim a hardship exemption if I just couldn't afford insurance?

Not automatically. "Can't afford it" alone usually doesn't may have access to. You need a specific hardship like job loss, eviction, homelessness, or a serious illness. The government decides whether your situation meets their definition of hardship.

If I owe the shared responsibility payment, can the IRS take me to court?

No. The IRS cannot file a criminal case for the penalty. They can pursue civil collection like wage garnishment or seizing your refund, but not criminal prosecution.

Is the shared responsibility payment the same as a health insurance premium?

No. The penalty is a tax charge for not having insurance. A premium is what you pay the insurance company for coverage. They're separate costs, and you can owe the penalty without ever buying insurance.