What Happens If You Lie About Having Health Insurance On Your Taxes?

Are you one of the many Americans who haven’t signed up for health insurance yet? Or maybe you did have coverage, but decided not to include it on your tax return this year. Whatever the reason may be, lying about having health insurance can have serious consequences.

The Affordable Care Act has made healthcare a priority in America and taxes are no exception. In this blog post, we will explore what happens if you lie about having health insurance on your taxes and how to avoid making that mistake. So buckle up and keep reading!

The Affordable Care Act and Taxes

The Affordable Care Act (ACA) was signed into law in 2010 with the aim to make healthcare more affordable and accessible for all Americans. One way that ACA does this is by requiring individuals to have health insurance or pay a penalty.

This requirement, known as the individual mandate, has been controversial since its inception. The idea behind it is that if everyone has health insurance, then costs can be spread out across a larger pool of people, making coverage more affordable for everyone.

With the enactment of the ACA came changes to tax laws as well. Now, taxpayers must report their health insurance status on their tax returns each year. This includes information about whether they had coverage throughout the year or not.

The IRS uses this information to enforce penalties for those who did not have coverage and did not qualify for an exemption. It’s important to accurately report your healthcare status on your taxes so you don’t face any legal consequences down the line.

What Happens if You Lie about Having Health Insurance?

Lying about having health insurance may seem like an easy way to save some money, but it can have serious consequences. If you file your taxes and claim that you had health insurance when you didn’t, the IRS will likely catch on.

The Affordable Care Act requires individuals to have minimum essential coverage or pay a penalty, known as the individual shared responsibility payment. If you don’t have health insurance and don’t qualify for an exemption, then you must pay this penalty. Lying about having coverage is not a valid excuse.

Penalties for lying about having health insurance include fines that increase each year. In 2021, the fee is either $695 per adult ($347.50 per child) or 2% of your household income above the tax return filing threshold for your filing status – whichever is greater.

In addition to paying penalties and fees, if caught lying about having coverage on your taxes, it could also affect future access to affordable healthcare options through government programs such as Medicaid or Medicare.

It’s important to be honest when filing taxes and accurately report whether or not you had health insurance during the tax year in question. The potential consequences are simply not worth it in the long run!

Penalties for Lying about Health Insurance

Penalties for lying about health insurance on your taxes can be quite severe. If you fail to report that you had health insurance during the year, or if you misrepresent the type of coverage that you had, then it is considered as tax fraud.

The penalty for not having minimum essential coverage in 2019 was $695 per adult and $347.50 per child under age 18 (up to a maximum of $2,085) or 2.5% of household income above the tax return filing threshold for that year, whichever is greater.

For instance, if an individual’s household income was $60k in 2019 and they did not have minimum essential coverage during that period, then the penalty would be calculated as follows: ($60k – $12.4k) x 2.5% = $1.37k.

It’s important to note that penalties may change annually based on inflation rates and other factors related to healthcare policies.

It’s crucial to avoid lying about your health insurance on your taxes since doing so could lead to hefty fines and legal repercussions down the line.

How to Avoid Lying about Health Insurance

Avoiding lying about health insurance on your taxes is crucial to avoid potential penalties and legal issues. Here are some tips to help you:

Firstly, make sure you understand the rules and regulations regarding healthcare coverage under the Affordable Care Act. Familiarize yourself with the requirements for minimum essential coverage, exemptions, and penalties.

Secondly, keep accurate records of your healthcare coverage throughout the year. This includes any forms or documents provided by your employer or insurance provider.

Thirdly, if you do receive an incorrect form from your employer or insurer regarding your healthcare coverage, reach out to them immediately to correct it.

Fourthly, seek professional assistance if needed. Tax professionals can provide guidance and ensure that all necessary information is included in your tax return.

Always be truthful when filing your taxes. Lying about having health insurance may seem like a quick fix in the short term but can lead to serious consequences in the long run.

By following these steps and being diligent in accurately reporting your health insurance information on your tax return each year, you can avoid potential penalties and legal issues related to lying about having health insurance.


Lying about having health insurance on your taxes can lead to serious consequences. Not only could it result in fines and penalties, but it could also cause issues with future healthcare coverage. It’s important to be honest when filing your taxes and accurately report whether you had health insurance or not during the tax year.

If you are struggling to afford health insurance, there may be options available through government programs like Medicaid or the Affordable Care Act. It’s always better to seek out assistance rather than risking legal trouble by falsifying information on your taxes.

Remember that being truthful is always the best policy when it comes to reporting your income and healthcare status on your taxes. By doing so, you can avoid any potential problems down the line and ensure that you’re following all necessary laws and regulations related to healthcare coverage.