The individual mandate provisions of the Affordable Care Act require every taxpayer to (a) have qualifying health coverage; (b) qualify for an exemption from having health coverage; or (c) pay a tax penalty. The penalty was not reduced to $0 until 2019. Individuals use their 1040 tax returns to identify their individual mandate health coverage status to the government. All individuals must check a box on the 1040 to indicate compliance with the individual mandate.
For the 2019 filing season, taxpayers must address the health coverage requirements of the ACA. Each individual will have to select the appropriate box on the 1040 to indicate coverage, show an exemption from the requirement to be covered, or pay the penalty.
Individuals who could afford health insurance in 2018 but did not have coverage, will be required to pay a penalty amount of 2.5 percent of yearly household income or $695 per person, whichever is greater.