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July 11, 2017
The “fee” is the individual mandate penalty for not having ACA compliant coverage. It is accessed annually but not necessarily a $695 flat fee. It is calculated in 2 different ways – as a percentage of your household income, and per person. You’ll pay whichever is higher.
Percentage of income
Per person
However, most people don’t know it is prorated over 12 months. For example, if you had insurance half the year, your penalty would be $347.50 ($695/2), assuming you are a single household tax payer and $695 is less than 2.5% of your modified adjusted gross income (MAGI).
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