The Fee for Not Having Coverage in 2014 If you didn’t have coverage in 2014, you’ll pay the higher of these two amounts when you file your 2014 federal tax return: 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. How to Obtain Exemptions from the Fee If any of the following circumstances apply to you, you may qualify for a “hardship” exemption from the penalty: You were homeless You were evicted in the past 6 months or were facing eviction or foreclosure You received a shut-off notice from a utility company You recently experienced domestic violence You recently experienced the death of a close family member You experienced a fire, flood, or other natural or human-caused disaster that caused substantial damage to your property You filed for bankruptcy in the last 6 months You had medical expenses you couldn’t pay in the last 24 months that resulted in substantial debt You experienced unexpected increases in necessary expenses due to caring for an ill, disabled, or aging family member You expect to claim a child as a tax dependent who’s been denied coverage in Medicaid and CHIP, and another person is required by court order to give medical support to the child. In this case, you dont have the pay the penalty for the child. As a result of an eligibility appeals decision, you’re eligible for enrollment in a qualified health plan (QHP) through the Marketplace, lower costs on your monthly premiums, or cost-sharing reductions for a time period when you weren’t enrolled in a QHP through the Marketplace You were determined ineligible for Medicaid because your state didn’t expand eligibility for Medicaid under the Affordable Care Act Your individual insurance plan was cancelled and you believe other Marketplace plans are unaffordable You experienced another hardship in obtaining health insurance Filing for An Exemption from the Fee To apply for a hardship exemption, use this exemption form: Individuals who experience hardships (PDF). See instructions to help you fill out an exemption application (PDF). If you or a dependent were not covered under an insurance plan for the year 2014, please be sure to fill out this exemption form and send it in as soon as possible to prevent delays in filing your income taxes this year.
Posted on: Wed, 21 Jan 2015 21:09:05 +0000
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