David M.Green Bookkeeping and Tax Service -
RSS

Recent Posts

Like Harvey, Retirement Plans Can Make Loans, Hardship Distributions to Victims of Hurricane Irma
IRS Has Refunds Totaling $1 Billion for People Who Have Not Filed a 2013 Federal Income Tax Return
File Without 1095-B or 1095-C
6-Month Extension Period for Calendar Year C Corporations
Early Withdrawals from Retirement Plans
powered by

My Blog

How the Obamacare Tax Penalty Works

For 2014, if you don't have health insurance and you don't qualify for an exemption, you'll have to pay a penalty of $95 per adult plus $47.50 per child (up to a maximum of $285 for a family) or 1% of your household income, whichever is greater. The flat dollar amount is reduced by 50% for dependents under the age of 18.

The fee increases each year until you g...et coverage. For 2015, penalty is $325 per adult plus $162.50 per child (with a family maximum of $975) or 2% of annual family income. And in 2016, the fee will be $695 per adult plus $347.50 per child (with a maximum of $2,085) or 2.5% of family income.

For purposes of determining the penalty, "income" is defined as what your household earns in excess of the income-tax filing threshold. (For 2014, the threshold is $10,150 for an individual and $20,300 for married couples filing jointly.) For instance, if you are a single woman who earns $45,000 in 2014, the penalty will be based on $34,850 of your income. One percent of $35,000 is $348.50. Because that amount is greater than $95, your penalty will be $348.50.

0 Comments to How the Obamacare Tax Penalty Works:

Comments RSS

Add a Comment

Your Name:
Email Address: (Required)
Website:
Comment:
Make your text bigger, bold, italic and more with HTML tags. We'll show you how.
Post Comment