If you were uninsured in 2014, you may be in for a little surprise when you file your taxes this year. And, this is a surprise that doesn’t involve cake or happy friends. The Affordable Care Act requires that every American must demonstrate that he/she has health insurance coverage. You may disagree with this part of the law, but it was upheld by the US Supreme Court, so the individual mandate to prove coverage is now a part of our annual tax filing process. For 2014, the tax penalty is $95/uninsured adult or 1% of your taxable income, whichever is greater.
The US Treasury has recently compiled some handy ACA exemption fact sheets for consumers. Make sure you know the facts about completing the new sections in your return, especially if you were enrolled in a Marketplace plan from HealthCare.gov for any part of 2014.
And, if you are paying a tax penalty for 2014 and still don’t have 2015 coverage, there is still time for you to enroll until April 30. You can complete your enrollment on HealthCare.gov, by phone at 1-800-318-2596, or in-person with a certified navigator. You can schedule an appointment with a navigator by calling 1-888-998-4646 or clicking here. The tax penalty for remaining uninsured keeps going up. If you are uninsured in 2015, the tax penalty is $325/uninsured adult or 2% of your taxable income, whichever is greater. If you are the tax filer, you are must verify insurance coverage for every person, including children, on your tax return. If any of your tax dependents are uninsured, you are responsible for the tax penalty. Penalties for children are 1/2 of the adult penalty.