Failure to have health coverage or qualify for an exemption may result in the assessment of a Shared Responsibility Payment (SRP) on your 2019 New Jersey Income Tax return.
You'll only be penalized for lacking insurance if you can afford to get health insurance but didn't. Individuals who are not required to file a New Jersey Income Tax return are automatically exempt from the SRP.
The amount of the SRP is generally based on your income and family size and is capped at the statewide average premium for Bronze Health Plans in New Jersey.
Is it more beneficial to pay the SRP or buy health insurance?
You may think it is less expensive to go without health insurance and just make an SRP. However, there is something to consider before making your decision.The SRP is subject to the same penalties and interest as New Jersey Individual Income Tax.
You are required to make a payment for the months that you and any family members do not have minimum essential coverage or a coverage exemption when you file your tax return.
The payment is set per criteria in the New Jersey Health Insurance Market Protection Act of 2018. Your payment amount is capped at the cost of the statewide average premium for Bronze Health Plans in New Jersey, as determined by the New Jersey Department of Banking and Insurance.
The following are examples of what the SRP could be::
Family with two adults and three dependents and household income of $200,000 or below:
Family with two adults and three dependents and household income of $200,001 to $400,000:
Family with two adults and three dependents and household income of $400,001 and above:
Note: Household income is the income of all members in a household, including dependents.
Your penalty amount will be calculated and entered on your 2019 New Jersey Income Tax return (Form NJ-1040). If you owe more than you are getting back in refund, pay the amount of tax due on the tax return. We will send a bill if the amount of tax due is not paid with the return.