April 17th is Tax Day: What You Need to Know

April 17th is Tax Day: What You Need to Know

This year, 2018’s “Tax Day” – the final date you must file your 2017 tax returns – is on April 17th, 2018. Traditionally, Tax Day is April 15th. Because of Emancipation Day, a legal holiday that Washington, DC observes on Monday April 16th, Tax Day was pushed to Tuesday, April 17th, according to the IRS. Emancipation Day observes the day President Abraham Lincoln signed the Emancipation Act.

Because the Affordable Care Act is still law, you must pay a penalty if you did not have health care in 2017. In some cases you may qualify for a health coverage exemption and may not have to pay the fee. But if you did not qualify for an exemption, you must pay the fee.

The 2017 fee for not having health insurance is either the percentage of your household income, or per person. You must pay whichever is the higher amount.

If percentage, you must pay 2.5% of the household income.

If per person, you will pay $695 per adult and $347.50 per child (under the age of 18).

You do not get to choose which way you will pay – it is determined by whichever is the higher amount.

If you don’t pay the fee, the IRS will hold back the amount of the fee from future tax refunds, according to Healthcare.gov.

If you had health insurance in 2017, you don’t have to worry about paying for the penalty. There are many examples of qualifying health coverage, whether it is a job-based plan, retiree plans, COBRA, Medicare, Medicaid, a parent’s plan, student health plan, and more—visit Healthcare.gov for more information on which plans count as coverage.

Don’t forget to file your taxes by the deadline of Tuesday, April 17th!

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