Affordable Care Act Individual Shared Responsibility Payment

Health care coverage is now required under the Affordable Care Act, also known as “Obamacare.” If you do not have coverage, the IRS can charge you with an individual shared responsibility payment when you file your taxes in 2015.

In their article on the subject, the IRS lists three reasons why you would have to make a payment:

  1. You have not signed up for a qualifying form of health insurance coverage.
  2. You had a gap in coverage in 2014. (If it was less than 3 consecutive months, you might qualify for an exemption.)
  3. You didn’t qualify for an exemption.

The amount you owe will be based on the greater of:

  • 1% of your household income that is above the tax return filing threshold for your filing status, such as Married Filing Jointly or Single, or
  • Your family’s flat dollar amount, which is $95 per adult and $47.50 per child, limited to a maximum of $285

For more information, check out the full article . There are many other great resources on the IRS website as well!

The Affordable Care Act and its tax implications can be confusing, but Nakata Consulting is always here to help! Send us your questions and we can address them in our upcoming blogs.