Obamacare Fines: Everything You Need to Know About How to Escape a Hefty Penalty If You Ignore the Mandate That You Buy Insurance

Already, the fear-mongers are sounding the alarm: If you don’t purchase exactly the type of health insurance that the Affordable Care Act (ACA) requires, come tax-time the IRS will slap you with a stiff penalty. As I explain in the post below, the ACA mandates that if you’re not already covered, you must buy insurance that includes “essential benefits” such as hospitalization, maternity and newborn care, and mental health services. Ignore the mandate this year, and you will be fined when you file your taxes next year.                                  How Much Would You Owe? If  you opt out of purchasing insurance that covers you and your family in 2015, the penalty will equal Either:  1 percent of your  income over your “filing threshold” (about $10,000 for an individual $20,000 for a couple) up to a maximum of $285 OR   a  flat dollar amount, of $95 per uncovered adult and $47.50 per child, up to a maximum of $285, whichever Is greater.   “Whichever is greater” means that wealthier taxpayers will be required to pay 1% of their income, and as a result can easily wind up owing significantly more than $285. This doesn’t mean that millionaires would be fined tens of thousands of dollars. An affluent family’s penalty also is capped, at the average cost of bronze plans sold in the state Exchanges nationwide. (Keep in mind that this could be less or more than the average price of a bronze plan in your state...
Source: Health Beat - Category: American Health Authors: Tags: ConsumerReports.org exemptions to Obamacare penalties hardship exemptions if you don't buy health insurance individual mandate Obamacare fines Uncategorized Affordable Care Act Source Type: blogs