Penalty for Not Having Health Insurance (Individual Shared Responsibility Payment) An additional tax (penalty) will be due with your 2014 federal tax return if an individual (and each member of their family) does not have health insurance coverage for at least nine months during 2014 or they qualify or have already obtained an exemption from the requirement to have health insurance. If applicable, the penalty for 2014 will be calculated as the greater of: 1% of the individual’s income that exceeds their 2014 filing threshold (personal exemption plus standard deduction for individual’s filing status); Or A flat dollar amount that is assessed for the taxpayer, spouse, and dependents as follows: $95 for taxpayer, spouse, and dependents over age 18 $47.50 for each dependent under age 18 The maximum family flat dollar amount for 2014 is $285 See the Individual Shared Responsibility Provision page on the IRS website for more information on the penalty for not having health insurance. See the Individual Shared Responsibility Provision - Exemptions page on the IRS website for more information on the types of exemptions that are available. Subsidy (Advanced Premium Tax Credit) and 2014 Federal Income Tax Return Any individual who purchases their health insurance through a Health Insurance Marketplace (Exchange) may be eligible to receive an advance premium tax credit (subsidy) to help pay for their monthly health insurance premiums. The subsidy is available to individuals whose income is between 100% and 400% of the Federal poverty level and is paid directly to the insurance company. The exchange calculates the taxpayer’s 2014 subsidy amount based on income reported on that individual’s 2013 or 2012 Federal income tax return and their family size. Based on the individual’s income reported on their 2013 or 2012 federal tax return and their family size, the Exchange calculates the advanced premium tax credit (subsidy) as follows: Determine the annual premium the individual will have to pay (expected contribution) Look up what the total 2014 premium is for the Exchange’s second lowest cost (silver) level of coverage (benchmark plan) Calculate the subsidy amount as the difference between the “benchmark plan” premium and the individual’s expected contribution. Read more about the Advanced Premium Tax Credit. Open Enrollment for 2015 Health Insurance Coverage The open enrollment period for obtaining or renewing health insurance plans that are purchased through a Health Insurance Marketplace (Exchange) for 2015 will begin on November 15, 2014 and last through February 15, 2015.
Posted on: Mon, 27 Oct 2014 08:52:20 +0000