If you decided
not to buy insurance this year, prepare yourself for a big bill from the IRS.
Obamacare-mandated fines for not having insurance are going up in 2015. And the
Internal Revenue Service is keeping track and collecting.
The requirement
for individuals to buy health insurance took effect in 2014. This year when you
file your taxes, you will have to disclose to the IRS whether or not you had
insurance last year. The fines for 2014 are not too bad – $95 per individual or
one percent of your household income, whichever is greater (above the tax
filing threshold).
But
insurance scofflaws face a sharp increase if they don’t get covered soon. The
fine will jump in 2015 to $325 or 2 percent of income, whichever is higher. By
2016, the average fine will be about $1,100, based on government figures.
The
insurance requirement and penalties remain the most unpopular part of the
health care law. They were intended to serve a broader purpose by nudging
healthy people into the insurance pool, helping to keep premiums more
affordable. But the application of fines in 2015 could renew criticism of the
law, at a time when Republicans are taking control of Congress and looking at
ways to undercut the policy.
According
to government figures, tens of millions of people still fall into the ranks of
the uninsured.
Unclear
is how many would actually be assessed a fine. The law offers about 30
different exemptions, most of which involve financial hardships. Further, it’s
unclear how aggressively the IRS would go after the fines.
Many
taxpayers may be able to get a pass.
Based on congressional analysis, tax
preparation giant H&R Block says roughly 4 million uninsured people will
pay penalties and 26 million will qualify for exemptions from the list of
waivers.
Are you
confused yet? Most Americans are. TurboTax, one of the main online tax filing
services, is offering a free online tool they call “Exemption Check” you can
use to see if you qualify for a waiver. There is no charge unless you later
file using their website. You can also go online and use the Tax Policy
Center’s Affordable Care Act penalty calculator.
And remember,
while we may continue to hope Obamacare will eventually be reversed, for now,
February 15, 2015 is the last day of open enrollment under the law.
http://raisetheflagreport.com/get-ready-fork-money-irs-obamacare-fines/
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