With the implementation of the Affordable Care Act, also known as “ObamaCare,” health care coverage is now required. If you do not have coverage, the IRS can charge you with an individual shared responsibility payment when you file your taxes in 2015.
There are three reasons why you would have to make a payment:
- You have not signed up for a qualifying form of health insurance coverage
- You had a gap in coverage in 2014 (if it was less than 3 consecutive months, you might qualify for an exemption)
- You didn’t qualify for an exemption
According to the IRS, the amount you owe will be based on the greater of:
- 1 percent 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 on the individual shared responsibility payment, click here.
The Affordable Care Act and its tax implications can be confusing, so we’ll be covering it in upcoming months. Be sure to send us your questions so we can address them in our blog!
