Wednesday, March 11, 2015

Your Fee For Not Having Health Coverage


You may have just paid or will pay a Health Care: Individual Responsibility Payment on your 2014 tax return.  Your payment would have been or will be the greater of:

  • 1% of your household income that is above your filing threshold or 
  • $95 per person (with a max of $285 using this method).


Now what about 2015?  You can expect to pay more for 2015 if you don't have the necessary coverage.  For 2015 you can expect your penalty (Health Care: Individual Responsibility Payment) to be the greater of: 


  • 2.0% of your household income that is above your filing threshold or 
  • $325 per person ($162.50 per child under 18)


For 2016 the penalty is:

  • 2.5% of your household income that is above your filing threshold or 
  • $695 per person ($347.50 per child under 18)

So if you do not have the necessary coverage you ought to take a look at the cost of coverage through the exchanges and compare it to your expected penalty.  You may be able to save yourself some money by getting coverage.  

Here is a link to more information about this topic on healthcare.gov

https://www.healthcare.gov/fees-exemptions/fee-for-not-being-covered/

You may also qualify for an exemption from getting the necessary coverage.  For more information about these exemptions see my post here:

http://thecpasuperhero.blogspot.mx/2014/03/9-exemptions-from-affordable-care-act.html


I help clients with their taxes and I do not do health insurance.  Yes, the government has made the penalty part of your tax return but for getting health insurance you ought to get help from an insurance specialist or check out what is available yourself online.

The CPA Superhero wants to help you to succeed in business, life, and in retirement.  While my main business is preparing tax returns, I also work with clients to setup accounting systems to start, manage and develop their business(es) and develop and implement a financial plan. Contact me using my information below to schedule a free introductory consultation up to a half hour. 

Jeff Haywood, CPA

The CPA Superhero
972-439-1955
jeff.jhtaxes@gmail.com

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My posts contain general information that does not fit every situation, they are not all inclusive, and as always for your tax situation everything "depends on facts and circumstances."  In addition, the information/IRS requirements are always subject to change.  So call me to talk about your specific facts and circumstances and what you want to accomplish.