Obamacare Tax Penalty Information – 1
What is the Obamacare Tax Penalty?
Beginning on April 1st, 2014 nearly all Americans will be required by law to purchase health insurance that covers key essential benefits or pay a tax penalty. The fee for remaining uninsured will be collected by the IRS as a “shared responsibility payment”. You won’t be required to pay this penalty until you file your taxes in 2015. You must purchase health insurance by March 31st, 2014 or you will be required to pay the Affordable Care Act penalty next year.
The cutoff date to secure coverage by April 1st is March 15th! We can help you through the Obamacare application process so you are approved for subsidies, choose the right plan with doctors in your area, and have a health plan that meets your needs.
How Much is the Affordable Care Act Tax Penalty?
How much each individual will be charged for the “shared responsibility payment” depends on their annual household income. The Obamacare tax penalty will start relatively small, but then increase over the next few years.
How Can I Avoid Paying the Health Insurance Tax Penalty in North Carolina?
Enrolling in a health insurance plan is really the only way to avoid the tax penalty. This might sound expensive, but you might find that purchasing health insurance in North Carolina may be more affordable than you think. There are a few temporary or income related situations in which the penalty can be avoided.
- If you don’t remain uninsured for more than 90 days in a single year.
- If you are uninsured for longer than 3 months, but less than a full year, you will only be required to pay a partial penalty.
- If you earn too little to file tax returns.
- If insurance would cost more than 8% of your income.
Open Enrollment Deadlines
Your best bet is to buy health insurance before March 31st and avoid the tax penalty entirely. The cutoff date for April 1st coverage is March 15th. For May 1st coverage, you mush purchase insurance coverage by March 31st. After this, open enrollment will close until August and Obamacare health insurance will only be available to those who are going through qualifying life changes. Don’t wait to get the health insurance coverage you need and avoid the tax penalties you don’t!
Other Ways to Save Money on Obamacare
Affordable Care Act health insurance may cost less than you think and can help your family avoid costly medical bills. For households whose income is less than 400% of the Federal Poverty Level, generous subsidies are available. Cost share reductions are also an option for some families. These different options may sound confusing, but a licensed North Carolina health insurance agent can answer all of your questions and help you find an affordable solution for your family. Give us a call to today to discuss how we can help!