It is illegal to not have qualifying health care coverage. If you don't have coverage, you will pay a penalty, unless you meet an exception. For 2015, the penalty for not having coverage is $325 per adult and $162.50 per child or a maximum of $975 OR 2% of household income, whichever is higher. The 2% is calculated on household income above your filing threshold. For 2016, the penalty increases to $695 per adult, 347.50 per child to a maximum of $2,085 or 2.5% of household income.

Their are penalties, but if you have a refund, the IRS can not collect it. The health care law has a provision does not allow the IRS to place a lien against your property or bank account to collect the penalty..

Gosh, I don't know your situation, but I have assisted approximately 50 people in signing up for ObamaCare on the state and federal exchanges. The good news is if your household income is less than $40,000 (the last line on the first page of your tax return - (Adjusted Gross Income) you will have FREE insurance and/or have a tax credit and/or get financial assistance to pay the insurance. It's worth your time to sign up even if your employer offers an insurance plan. This is the first year your employer has to ask you if you qualify for assistance and insurance companies can no longer sell your employer high deductible, high cost, useless insurance plans. There are 4 defined plans for example, Platnium has no deductible and obviously costs the most and Bronze has highest deductible and costs the least. There are hundreds of insurance companies to choose from. You can choose from an HMO plan where your primary physician refers you to another doctor (like Kaiser) or PPO where you choose your own doctor. It is easy to apply, just google "your state" exchange and it will direct you to your state or the federal exchange if your state hasn't created it's own exchange. Just remember the first question asking about money is asking about your W-2 wage and farther down it asks about self-employment income (or Sch C Business Income) taken into consideration after expense or NET INCOME. There are 10 Essential Health Benefits required for any insurance plan under the ObamaCare law that you get with any policy you choose and each insurance company will entice you with further free benefits to get you to buy from their company. It is a Free-Enterprise Market for all. Sign your Household up today. Most exchanges have "Live Chat" if you need a question answered and ALL exchanges offer in person or phone sign up. You have nothing to lose and you gain assurance that you have a partner in a LONG HEALTHY LIFE.