Health Insurance Tax Penalty: What you could pay if you don't get covered
April 8, 2015
by Presented by: Health Law Guide for Business Team
For the first time when filing their taxes, people are facing a penalty if they do not have health insurance. Known as the “shared responsibility payment,” this can amount to 1 percent of a household’s 2014 income, or $95 per adult and $47 per child, whichever is higher. Many people are now realizing that 1 percent of their household income is in fact much greater than $95. For 2015, the penalty will go up significantly and in many cases it will more than double.
Although those who didn’t enroll in a health plan during this last open enrollment period (and who didn’t know that they would have to pay a penalty) now have until April 30, 2015 to apply for health coverage, many are still brushing off the opportunity and ignoring the impact these penalties will have on them this year and beyond. As you can see in the infographic below, tax penalties vary by family size and income, and grow as we get closer to 2016.
The bottom line: enroll in health insurance between now and April 30! Many individuals and families may even qualify for subsidized plans through Medi-Cal or Covered California.
Don’t hesitate to let us know if you have any questions or if you would like printed copies of this flyer to distribute to any who may find it useful. The flyer is also available in Spanish.
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