True or False: Individuals who do not purchase health insurance can face tax penalties.

Individuals who do not purchase health insurance can face tax penalties, making the statement true. This was particularly relevant during the enforcement of the Affordable Care Act (ACA) when the individual mandate required most Americans to have health insurance or face a penalty when filing taxes.

While the penalty was eliminated at the federal level starting in 2019, some states have implemented their own mandates with associated penalties for those who do not maintain health insurance coverage. Therefore, understanding the context of this legislation is crucial as it affects individuals' decisions regarding health insurance and potential financial implications if they choose to go without coverage.

The relevance of income thresholds and dependents is tied to specific stipulations of some state laws but does not apply universally, which is why the straightforward answer regarding tax penalties for not purchasing health insurance stands as true.