This Saturday is the start of open enrollment for Covered California Healthcare Coverage. If you need health insurance and/or have any questions please feel to call me at 909-570-1103.
Don’t get penalized, it is a lot more than you think, see image below:
The cost of the Obamacare penalty in 2014
If you went without “essential health benefits” for more than three months in 2014 and didn’t qualify for an exemption, you will be required to submit to the penalty on your tax return.
The cost of the 2014 Obamacare penalty is calculated in one of two ways, with you paying the higher amount. The penalty is either 1% of your taxable income, or it is $95 per adult and $47.50 per child with a maximum amount of $285.
Taxable income is figured every year on your tax return and includes your salary and adjustments for any additional income, exemptions and deductions. Your tax return walks you through how to determine this figure and will likewise help you determine the amount of your penalty.
So, for example, if a single person’s 2014 taxable income was $22,500, her 1% would be $225, far more than the individual penalty of $95 per adult. Therefore, she would be penalized the $225 because it is the greater of two fees.
Another example: If a single-income household with two adults and three children brings in $27,000, their 1% fee would be $270, but their flat fee would be $285. Their penalty would be $285, as it is the greater of the two options.