If you have recently begun working on your federal income tax return, you may have noticed something new this year. Obamacare tax penalties are kicking in, and that means some people will be hit with a penalty if they aren’t covered by a health insurance policy.
It’s call the “Individual Mand unless you qualify for an exemption, this part of the Affordable Care Act imposes a fine upon anyone who wasn’t covered by a health insurance plan in 2014.
This year the penalty amounts to a relatively small amount.You will be charged 95 dollars per adult and $47.50 per child (up to $285 for a family); or 1% of your household income above the tax return filing threshold for your filing status, whichever is greater. You will pay one-twelfth of the total fee for each full month a family member went without coverage or an exemption.
That’s not so bad… but next year the penalty is set to increase. If you aren’t covered by an insurance policy in 2015, then next year’s tax penalty will amount to 325 dollars per adult and $162.50 per child (up to $975 for a family); or 2% of your household income above the tax return filing threshold for your filing status, whichever is greater.
Luckily, you still have time to get covered – if you hurry! The Open Enrollment period for health insurance ends on February 15, so you have a few more days to sign up for a plan. Keep in mind that if you don’t enroll in a health insurance plan by February 15, you will have to wait until Open Enrollment begins again this December. Without coverage in 2015, you will be subject to the penalty charge when you file your income taxes next year. Not to mention, you could rack up high medical bills this year if you contract a serious illness or have an accident.
To enroll in a health insurance plan, sign up via the Covered California website, or call a qualified insurance broker for more information.