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    With Congressional Republicans unable to muster the required majorities to pass several versions of House and Senate health care replacement bills, all current Obamacare laws and penalties (individual mandate) described below are still in full effect for next year (2017 tax year) However in 2018 the answer may change if GOP tax reform bills to support President Trump’s tax reform agenda are reconciled and pass Congress.

    The Senate’s version of the tax reform package does in fact contain a provision to repeal the individual mandate (Obamacare penalty) from 2018.

    This is the question a lot of Americans are asking.

    The short answer is YES for 2017, but MAYBE NO for 2018.

    The final decision on this repeal is still subject to a final tax reform bill being bought to the President’s desk for signing, which likely won’t happen till the end of the year.

    If it does not pass, then the penalties outlined below by the IRS will still be in effect for the foreseeable future.

    People who are unemployed or cannot find a policy that costs less than 8% of their modified adjusted gross income would also be exempt from penalties under the individual mandate.

    But this “hardship clause” does not mean that taxpayers should NOT pay the penalty or delay filing ahead of any formal repeal law.

    The challenge they are current facing is that their still isn’t broad consensus for this Obamacare replacement plan and implementing a full replacement will take months, if not years.

    Without an effective replacement plan an ACA repeal could leave millions without access to health insurance and create significant financial turmoil within the American healthcare system.

    Here is a summary table of the standard penalties for not having health insurance.

    Details on how the penalty is applied and individual exemption mandates are provided in subsequent sections. From 2017, the minimum tax penalty per person will rise each year with inflation.

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