Printed on December 11, 2015
Do you know that having medical health insurance when you possibly can afford it’s the legislation? In the event you can afford medical health insurance, however select to not get it for 2016, it’s possible you’ll be required to pay a payment — typically known as the “penalty,” “nice,” or “particular person mandate” — whenever you file your 2016 federal revenue taxes.
The excellent news is, inexpensive protection by way of the Well being Insurance coverage Market® is on the market. After monetary assist, 7 out of 10 folks can discover plans with premiums of lower than $75 {dollars} monthly. In the event you enroll by December 15, 2015, your protection will begin January 1, 2016.
Need to see plans and costs obtainable to you earlier than you apply? You may preview 2016 plans and costs right here — it’s possible you’ll be shocked to be taught simply how inexpensive medical health insurance will be.
Breaking it down: the payment
Listed below are 5 fast details concerning the payment for not having well being protection when you possibly can afford it:
- The payment is calculated 1 of two methods, relying in your scenario. It’s both a proportion of your annual family revenue or a set quantity for every particular person in your family who doesn’t have medical health insurance. Once you file your federal revenue taxes, when you’re uninsured for greater than 3 months regardless of getting access to inexpensive protection, you’ll be required to pay whichever quantity is greater. Discover ways to estimate the payment you’ll need to pay when you don’t have medical health insurance primarily based in your scenario.
- The payment is growing for 2016. For 2015, the penalty for no medical health insurance is $325 per particular person or 2% of your annual family revenue – whichever is greater. For 2016, the payment is $695 or 2.5% of your revenue — whichever is greater. For many individuals, that’s greater than the yearly value of well being plans they’ll discover on HealthCare.gov.
- Each month with out protection counts. The payment is calculated primarily based on the variety of months you and your family went with out . The extra months you go with out well being protection, the upper the payment, as much as the utmost. (However when you’re uncovered for just one or 2 consecutive months, you don’t need to pay the payment in any respect.)
- For some folks, exemptions from the payment can be found. Folks with very low incomes and people who meet different particular circumstances can get an exemption from the requirement to have medical health insurance and received’t need to pay the payment. Study extra exemptions, and see when you qualify.
- You could have till January 31 to enroll in a 2016 plan to keep away from the payment. The ultimate deadline to join 2016 protection is January 31. A Particular Enrollment Interval across the April 15 tax submitting deadline received’t be provided in 2016. In the event you don’t enroll by then, you can have to attend one other yr to get protection and should need to pay the payment whenever you file your 2016 revenue taxes.
