Many are curious how they will be affected this upcoming tax season regarding the Affordable Care Act. Below is a snap shot of possible penalty exposure: The penalty for NOT having healthcare coverage is calculated 2 ways and varies per year. Youll pay either a percentage of your household income or a flat fee -- whichever is higher. You’ll pay the fee on the federal income tax return you file for the year you don’t have coverage. The fee in 2014 - 1% of your yearly household income. (Only the amount of income above the tax filing threshold, about $10,000 for an individual, is used to calculate the penalty.) The maximum penalty is the national average premium for a bronze plan. $95 per person for the year ($47.50 per child under 18). The maximum penalty per family using this method is $285. The fee for 2015 - 2% of your yearly household income. (Only the amount of income above the tax filing threshold, about $10,000 for an individual, is used to calculate the penalty.) The maximum penalty is the national average premium for a bronze plan. $325 per person for the year ($162.50 per child under 18). The maximum penalty per family using this method is $975. The fee for 2016 - The penalty increases every year. In 2016 it’s 2.5% of income or $695 per person. After that its adjusted for inflation. Feel free to share...
Posted on: Wed, 31 Dec 2014 19:53:22 +0000
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