is just weeks away for Americans to get health insurance and avoid the tax penalty.
By March 31, 2014, every American must have health insurance unless they
qualify for an exemption (see below) or face the penalty.
The tax penalty, which will be phased
in over the years, is the greater
of these two amounts:
per adult or 1% of household income for 2014,
- $325 or 2% of household income for 2015,
- $695 or 2.5% of household income for 2016 and
beyond (indexed for inflation)
- The penalty for an uninsured child is half the
For a single individual with a taxable
income of $32,000, the penalty would be $320.
For a family of five with a household
taxable income of $56,000, the penalty would be $560.
The Internal Revenue Service (IRS)
will either deduct money from individual refunds or from tax credits.
you could pay a sizable fee unless you qualify for an exemption. Those who
covered by Medicaid and Medicare
- Individuals not
lawfully present in the U.S.
- Members of a Native American tribe
- Members of a
religion conscientiously opposed to accepting benefits
As of January 2014, three million
people have signed up for individual coverage and close to six million now
qualify for Medicaid. The Associated Press reports that 42 percent of Americans
are still opposed to the law, about the same as four years ago. Regardless of
where you stand, Obamacare is here to stay so know what is required of you and
Disclaimer: Every effort has been taken to provide
the most accurate and honest analysis of the tax information provided in this
blog. Please use your discretion before making any decisions based on the
information provided. This blog is not intended to be a substitute for seeking
professional tax advice based on your individual needs.