Are you among the shrinking number of Americans without health insurance? If so, you could face a hefty penalty in 2016. The cost of going without coverage is $695 or 2.5% of your income, whichever is greater. It will be added to the amount you owe in federal income tax when you file your return for the year.
That’s a lot of money to pay when you get nothing in return. Many people choose to accept the penalty because they think it’s cheaper than the cost of coverage. But a lot of them may be wrong.