Health Insurance and Taxes Update

There is still a lot of uncertainty regarding health insurance and taxes.  We hope to be the CPA firm that helps you clarify some of that uncertainty.

 

What is the fee for not having health insurance for 2014 and 2015?

If you choose to not have coverage, there is a penalty. It will be the higher of:

For 2014:

1% of 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.

or

$95 per person for the year ($47.50 per child under 18). The maximum penalty is per family using this method is $285.

 

For 2015:

2% of 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.

or

$325 per person for the year ($162.50 per child under 18). The maximum penalty is per family using this method is $975.

 

How will the IRS know if you had health insurance or not? You will be asked through the tax filing process. If you did not have health insurance, the calculated fee would be added to your tax liability or subtracted from you tax refund for the year.