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Has taxable income of 10000 in 2016 but no health insurance She will have to pay a tax penalty of?
Wiki User
∙ 10y ago
No penalty, as $10,000 is below the Federal Poverty Level for 1 individual, and thus, the person automatically qualifies for Medicaid from their state, and thus, has coverage.
The Federal Poverty Level in 2016 will be about $13k for 1 person. In the states with expanded Medicaid coverage (138% of FPL), the person would qualify for Medicaid up to about $17k.
Also, note the qualification standard is based on Adjusted Gross Income, NOT Taxable income, which are different. Taxable Income is AGI minus all deductions.
So, pedantically, a $10k Taxable Income likely has a higher Adjusted Gross income just enough bigger to go over the $13k limit, so they'd have to pay the $695 penalty for no healthcare coverage in 2016.
Wiki User
∙ 10y ago
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