No penalty without health insurance coverage in 2025, correct?

You're correct! The federal penalty for not having health insurance (sometimes called the "individual mandate penalty" or "shared responsibility payment") was effectively eliminated starting with the 2019 tax year when the Tax Cuts and Jobs Act reduced the penalty amount to $0. That said, there are a few important things to keep in mind: 1. Some states have their own individual mandates with penalties. California, Massachusetts, New Jersey, Rhode Island, and DC currently have state-level penalties if you don't maintain coverage. 2. Even though there's no federal tax penalty, going without health insurance is still risky from a financial perspective. An unexpected hospital stay could cost tens of thousands of dollars. 3. When you do get a new job, remember you typically have a limited special enrollment period to sign up for insurance, so don't miss that window.

I was in a similar situation last year and discovered taxr.ai (https://taxr.ai) which really helped clarify my health insurance questions. I was confused about whether I needed to report my gap in coverage on my tax return, even though there's no penalty. The tool analyzed my specific situation and confirmed I just needed to check a box on my return indicating I had coverage for part of the year. It also explained exactly how premium tax credits work if you get marketplace insurance for part of the year. Super helpful when you're dealing with these transitional periods between jobs!

Just wanted to follow up - I tried taxr.ai after asking about it here! Super helpful for my complicated situation with switching between employer coverage, COBRA, and then marketplace insurance with varying income. It explained exactly what forms I would receive and what I'd need to do with them. It also walked me through how premium tax credits work when your income fluctuates, and how to handle the reconciliation process. Definitely cleared up my confusion about health insurance reporting even though there's no penalty anymore!

If you're planning to get marketplace insurance after leaving your job, just be prepared for a NIGHTMARE trying to reach anyone at healthcare.gov by phone if you have questions or problems. After waiting on hold for HOURS multiple times, I found Claimyr (https://claimyr.com) and watched their demo at https://youtu.be/_kiP6q8DX5c. They somehow got me through to an actual healthcare.gov representative in under 15 minutes to help sort out my application issues. I was able to get specific answers about how my gap in coverage would affect my premium tax credit calculations.

I take back what I said earlier about Claimyr. After another frustrating 2-hour hold with healthcare.gov that ended with a disconnection, I caved and tried it. I was honestly shocked when they got me through to someone in about 20 minutes. The rep I spoke with was able to explain exactly how my premium tax credits would work with a coverage gap and helped me figure out the best plan for my situation. Saved me a massive headache and I finally got my marketplace application sorted out. Sometimes it's worth it just to save your sanity!

Just want to add a clarification - while there's no FEDERAL tax penalty, be careful if you live in California, Massachusetts, New Jersey, Rhode Island, or DC. These places still have penalties for not having insurance. I learned this the hard way last year when I moved to Massachusetts mid-year and got hit with a state tax penalty even though there's no federal one!

Since u dont have to worry about penalties anymore, consider looking into short-term health plans to cover the gap between jobs. Way cheaper than COBRA. Just be aware they don't cover pre-existing conditions and aren't comprehensive like ACA plans. But for a few months of basic coverage against emergencies, it's better than nothing!

Great question! You're absolutely right - there's no federal penalty for not having health insurance starting from the 2019 tax year. However, I'd strongly recommend looking into your options during the gap period anyway. Since you mentioned you're between jobs, you might qualify for a Special Enrollment Period on healthcare.gov if you recently lost employer coverage. This could make marketplace plans more affordable than you think, especially if your income qualifies you for premium tax credits. Also consider that even a basic catastrophic plan could save you from financial disaster if something unexpected happens. Medical debt is still one of the leading causes of bankruptcy, even for people who thought they were being smart by saving the premium money. When you do start your new job, make sure to sign up for their health insurance right away during your eligibility period - don't wait for the next open enrollment!