The Affordable Care Act requires
all US citizens who meet income thresholds to have health insurance. You can
choose your employer's coverage, buy private insurance, join your state's
exchange or receive coverage from Medicare or Medicaid. What penalties will you
incur, though, if you don't have health insurance this year?
Individuals
In 2014, the penalty is the
greater of $95 or one percent of your income. That figure rises to $325 or two
percent of your income in 2015. By 2016, expect to see a $695 or 2.5 percent
penalty. Additional points to remember include:
*Your 2014 penalty is capped at
around $9,800, the average price for a bronze plan.
*If you didn't have health
insurance, you'll owe a pro-rated tax penalty. That means you'll pay the full
penalty if you're uninsured for the entire year but only one-twelfth the
penalty if you're uninsured for one month.
*The penalty is due for the
current year on next year's tax return. So penalties for 2014 will be due with
your 2015 tax return.
Families
The 2014 penalty for an
uninsured family caps at the greater of $285 or one percent of income. Expect
to pay the greater of $975 or two percent of your income in 2015 and $2,085 or
2.5 percent of income in 2016. These penalties apply whether you have one
dependent or a dozen.
Exceptions
If you're an individual or part
of a family that doesn't make enough money to file income tax, you could either
receive a subsidy to buy insurance or be exempt from the tax penalty.
Unemployed people are also exempt. Likewise, if you can't find a policy that
costs less than eight percent of your modified adjusted gross income, you won't
owe the penalty.
Enroll Today
With a qualified health
insurance plan, you avoid tax penalties. Plus, you're able to receive the
preventative and routine medical care you need. So enroll in the Healthcare
Marketplace any time before February 15, 2015 or talk to an insurance agent
today and learn more about your options.