How much is my Obamacare penalty?
Did you know that if you don’t have health insurance starting in 2014, you will have to pay a penalty? How much you pay will depend on many things, including your annual household income and whether you have any dependents.
Here is how you determine your Obamacare penalty for the 2014 tax year.If you’re an individual, your penalty will be $95 or 1 percent of your taxable income above a $10,000 threshold – whichever is higher. There is a cap on the penalty, so it can’t be greater than the lowest annual cost of a bronze plan offered through the exchange. For an individual, the maximum penalty is $2,448.
Here’s how it works for families – their penalty will be $285 or 1 percent of their taxable income above a $20,000, whichever is highest. The maximum penalty for a family of five members of more is $12,240.
Starting in the 2014 tax year, Americans without health insurance will have to pay their penalty to the IRS. Typically, the penalty will be subtracted from your tax return.
Obamacare penalties will be increasing each year – in 2015, for example, if you don’t have health insurance, you’ll pay a penalty of $325 or 2 percent of your income, whichever is highest.
To make it easier for you and your family, insurancequotes.com has an easy-to-use Obamacare penalty where you can calculate how much your penalty may be. You can find the link in the description of this video.