Individual Penalties

Individuals who cannot show proof of health insurance coverage as of Dec 31, 2007 will lose their personal income tax exemption when filing their 2007 taxes. The 2006 personal exemption is $3850 for an individual, which translates into a tax savings of approximately $204 for an individual. However, failure to meet the requirements in 2008 will result in a fine for each month the individual does not have coverage. The fine will equal 50 percent of the least costly available insurance premium that meets the standards for minimum creditable coverage.