Obamacare has been one of the central topics of Obama’s presidency. And now with the healthcare deadline approaching on February 15th, everyone is scrambling to apply and get covered. That’s because if you do not have a healthcare plan by the deadline, you will be charged a penalty when you file your income tax for 2015.
Known as the individual mandate for Obamacare, the penalty per adult is upwards of $95 and $47.50 per child. This $95 penalty, however, is just a minimum. Individuals who rank in the middle to upper class could see their fees be much higher. Additionally, the maximum penalty per family is either $248 or 1% of your household income. Furthermore, if you cannot solidify yourself qualified health insurance for 2015, you are subject to steeper penalties.
In fact, it has been estimated by Mark Mazur, assistant secretary for tax policy at the Treasury Department, that between 2 and 4 percent of taxpayers skipped out on insurance last year. In addition to that, 10 to 20 percent of taxpayers were uninsured, but have qualified for exemptions.
Rest assured, there are ways in which you can be exempt from such a penalty. Some of those include: coverage from a qualified off-exchange plan, your income is too low for the filing of a tax return, you have coverage under Medicare or Medicaid, and others. See a full list here.
If any of this sounds confusing, the easiest way to estimate your total penalty is by using this helpful Obamacare calculator. It will help you to identify the number you need to include on your 1040 form.
