Play or Pay for Health Insurance
To those of you who are self-employed, or who don’t offer or receive an option for group health insurance, we are approaching the end of open enrollment for individuals to obtain health insurance in 2015. The official last day of open enrollment is 2/15/2015. If you have not signed up for insurance by that date, you will not be able to get insurance until the next open enrollment period which will be 11/15/2015.
There will be penalties assessed on the 2014 tax return for those who have failed to acquire ACA-compliant insurance for the year of 2014 – insurance that is compliant with the detailed minimal essential coverage benefits. While the penalty for 2014 is not so bad, the greater of a flat $95 per adult and $47.50 per child under age 18, up to a maximum of $285 per family, or 1 percent of your family’s modified adjusted gross income that is over the threshold that requires you to file a tax return. In 2015, the penalties are significantly rising in 2015 and beyond. For 2015, those without compliant coverage will be penalized $325 per person for the year ($162.50 per child under 18) or 2% of your family/household income, whichever is greater. The maximum penalty per family using this method is $975. Fees will be calculated and assessed on your tax return.
