The annual individual shared responsibility payment is the greater of:

  • 2.5% of the taxpayer’s household income that is above the tax return filing threshold fortaxpayer’s filing status; or
  • The taxpayer’s flat dollar amount, which is adjusted annually based on the cost-of-living adjustment and factors described at 26 U.S.C. 5000A(c)(3)(D). The flat dollar amount for plan year 2018 will be based on the 2016 flat dollar amounts plus an inflation adjustment. This amount has not been established as of the date of publication of this training.

The total payment amount is capped at the cost of the national average annual premium for a Bronze level health plan available through the Marketplace in 2018.

For more information, please visit the Internal Revenue Service (IRS) website.