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There is a fee if you do not have health insurance
How much will you pay if you don’t have Health Insurance?
If you choose not to buy health insurance but can afford it; then you are required to pay a fee. The fee is called the “Individual Shared Responsibility Payment.” This fee can sometimes be called or referred to as the “Individual Mandate,” or “Fine” or “Penalty.”
You must pay the fee for any of the months you don’t have qualifying health coverage. This includes your spouse as well as any tax dependents. This may also be referred to “minimum essential coverage.”
When filling your federal tax return; the fee is paid for any years you don’t have insurance coverage.
There are some cases you when you are not required to pay the fee. This is if you qualify for a “health coverage exemption.”
What is the 2016 fee or Obamacare Penalty for not having Health Insurance
There are 2 different ways the fee is calculated.
Using a percentage of your household income.
You pay whichever is the higher of the 2. This fee also will rise with inflation in the upcoming years.
Percentage of Household Income:
5% of the household income
Maximum – This is whatever the total yearly premium of the national average price for Bronze Plans sold through the Marketplace.
Percentage per Person:
$695 per adult
$347.50 per any child under the age of 18
Maximum Fee: $2,085
Paying the fee:
When using the percentage method. The only part that is counted is the part of your household income that is found above the annual tax filing threshold.
It is $10,150 – individuals – filing jointly in 2014 – most recent year available
It is $20,300 – couples – filing jointly in 2014 – most recent year available
When you use the per-person method, then you will only pay the for people in your household that did not have any health insurance coverage.
If you only had health coverage for a part of the year, then this fee will be one half of the annual amount for each month that you or your tax dependents did not have health insurance coverage. For only 1 or 2 months of uncovered insurance you will not have to pay any fee.
You then pay the fee when filing your federal tax return for any year you did not have coverage.
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