Serving Idaho since 1992

Changes to Individual Mandate Tax Penalty


On Dec. 22, President Trump signed the Tax Cuts and Jobs Act (TCJA) into law which repealed the tax penalty for the individual health insurance mandate. Many Americans are under the impression that this year they are out from under Obamacare’s tax penalty. This is incorrect. The repeal of the individual mandate tax penalty does not take effect until 2019. This year the tax penalty is still the law of the land, and the IRS will enforce it. The repeal of the tax penalty is not a repeal of the individual mandate provision itself.

The IRS will still levy the penalties for the 2017 and 2018 tax years, and related reporting requirements for businesses and insurers will remain in force until repealed. Technically, the mandate itself was not repealed, but rather the penalty was set to $0 for 2019 and future years. The penalty won't go away until 2019, and that means you still will owe the IRS if you didn't have health insurance — or an exemption from the mandate — in 2017. The same holds true for this year, 2018.

Davies Insurance Services, Inc., 450 W. State Street, Suite 125, Eagle, Idaho 83616

Phone: 208-345-3900 Fac: 208-321-4141

Davies Insurance Services has served Idaho since 1992, specializing in both group and individual benefits. As a preferred broker with all major carriers licensed in Idaho, we are able to provide you with the best coverage based on your individual needs. We are dedicated to providing exceptional customer service and quality products, while striving to keep our clients informed of State and Federal mandates.

Davies Insurance Services