Heard of Obamacare? How about the penalty for not having Health Insurance all year? Well, this year that penalty went up. It’s the greater of $325 per adult ($162.50 per child) or 2% of the household income that is over the tax filing requirement. Maximum of $975 per family……YOWZA!!!!! You can check out HealthCare.gov for Open Enrollment if you want to use the “Marketplace” to shop for or actually get health insurance coverage.
Depending on your income and if you are offered healthcare through your job, you may be eligible for a premium credit that pays some of your premiums for you if you get the coverage through the Marketplace. Remember to update your info on the Marketplace website, though, if you get a credit because income, family size and where you live could mean your credit may go up or down monthly and you will have to pay back whatever your weren’t entitled to on your tax return (never fun). Updating the info during the year means they will change the credit amount if needed so you don’t have a big adjustment at tax time. According to an article by CNBC in July, 2015: for 2014, 10% had the correct credit, 40% got MORE $ at tax time (WHOOPEE!) and 50% had to pay back an average of $800 when filing their tax returns (OUCH!).
There are some exemptions from having to get coverage, but they don’t pertain to most people. About 9% of all filers claimed an exemption to the health care mandate in 2014.
If you had health care, you’ll be receiving a Form 1095. Make sure to give it to us at tax time….it shows you had coverage through work or the Marketplace. And maybe it’ll get you out of that pesky penalty.
For more info (written by me) see Articles …… Health Care Articles …… on this website