Affordable Care Act Penalty

[TaxGuyBill]

Wow, I am really confused. Is the $95 per person penalty per month or per year?

So if a single person does not have a policy for the whole year, is the penalty $95 or $1,140 ($95 X 12 months)?

The 2014 MINIMUM penalty for a single person is $95. The penalty is the GREATER of $95 or 1% of the MAGI over filing threshold (usually $10,000 for a single person). So if the single person's MAGI is over $19,500, the penalty will be over $95.

That goes up to $325 (or 2%) in 2015 and $625 (or 2.5%) in 2016.

[S T]

See this link - only a calculator, Tax Bill Guy provides more precise information on the why/wherefors on his posts, and seems to have readily study this and understand it. Thank Goodness!

The calculation page for the penalty for 2014 does assist.

http://www.ihealthcareupdates.com/tools/health-insurance-tax-calculator/

Sandy

[TaxGuyBill]

I wanted to update things. There IS a Regulation (Title 45, not in the tax code) that if the person is not eligible because the State did not expand Medicaid, it is considered a "hardship" and the person is not subject to the penalty. However, I think you need to apply for the hardship exemption.

http://marketplace.cms.gov/getofficialresources/publications-and-articles/hardship-exemption.pdf

(4) Ineligible for Medicaid based on a state's decision not to expand. The Exchange must determine an applicant eligible for an exemption for a calendar year if he or she has been determined ineligible for Medicaid for one or more months during the benefit year solely as a result of a State not implementing section 2001(a) of the Affordable Care Act

http://www.law.cornell.edu/cfr/text/45/155.605#g

[arlo]

I know what I will be doing in the off season

Study, Study, Study