During this tax season, the consequences of not having health insurance will start to kick in. Those that may be expecting a refund, but were uninsured for a portion of the year may see less of that money. Under the Affordable Care Act, the penalty for not having health insurance is the greater of $95 or 1% of income.
In other words, if Jay Worker made $14,400 last year, but did not have a qualifying health insurance plan, Joe may have to pay a penalty fee of $144 on his taxes after filing in January.
There are some exemptions for low-income individuals and for certain hardships. According to a recent Gallup Poll, an estimated 60% of the uninsured are likely to qualify for an exemption. Just under a third of the uninsured are unaware that there is even a penalty they have to pay.
Despite all the buzz about the Affordable Care Act, millions are still left in the dark about how Obamacare could affect their lives, their finances, and their taxes. Get the word out and share this post and many others from The Affordable Care Act & Taxes.