Question

I was covered by my parents’ health insurance until September 2018, and then I enrolled in my own health insurance plan. My insurance is a HDHP, and I have a HSA. Will I owe a health insurance penalty for failure to maintain coverage?

Answer

You won’t be subject to a health insurance penalty if all of these are true:

  • You established your own coverage within three months after you lost coverage under your parents’ plan.
  • You didn’t establish the health savings account (HSA) until the high-deductible health plan (HDHP) was in place. Also, you only contributed to it while the HDHP was in place.
  • You’ve remained covered only by the HDHP and other permitted coverage.

Related Topics

Related Resources

6 Ways to Maximize Your Refund

Think it's too late to make a difference on this year's tax return? Think again! Learn how to maximize tax deductions and increase your refund with H&R Block.

What You Need to Know About an IRS Statutory Notice of Deficiency

The Statutory Notice of Deficiency is part of a series of notices sent by the IRS to propose additional tax, penalties and interest. Learn more from the tax experts at H&R Block.

IRS Letter 2194 – Alternative Minimum Tax Proposal Letter

The IRS thinks you may owe Alternative Minimum Tax (AMT). Learn more about IRS letter 2194 from the tax experts at H&R Block.

IRS Letter 257C – We Corrected Your Name or Taxpayer Identification Number

The discrepancy between your name and your Taxpayer Identification Number has been corrected. Learn more from the tax experts at H&R Block.