Federal Tax Provisions Not Applicable for 2014 Tax Returns
April 23, 2014
April 15 Tax Return and Filing Deadline Reminders
April 9, 2014
Small Business Tax and Health Care Reminders for the 2014 Tax Season
March 26, 2014
IRS Health Care Tax Tips and Reminder about the Premium Tax Credit for 2014 Returns
March 5, 2014
Penalty for Not Having Health Insurance
The penalty will be calculated on the individual’s 2014 Federal income tax return. The penalty is calculated for each month that they do not have health insurance coverage.
A penalty will not be imposed on:
- Individuals without health insurance for less than three months during the year
- Members of Native American tribes
The penalty is calculated as the greater of:
- A percentage of the individual’s income that exceeds their filing threshold for each year;
- The percentage will be 1% for 2014, 2% for 2015 and 2.5% for 2016 and later.
- Filing threshold is defined as the personal exemption amount plus the standard deduction amount for the individual’s filing status.
- A flat dollar amount is assessed separately for the taxpayer, spouse, and dependents.
- The flat dollar amount will be $95 for 2014, $325 for 2015 and $695 for 2016 and beyond.
- The amount is 50% for each dependent under age 18.
- The total family flat dollar amount is capped at 300% of the annual flat dollar amount.
The penalty amount cannot exceed the national average premium for bronze-level health plans (for the relevant family size) offered at the State Exchange for which the taxpayer resides.
Individuals who are Exempt from the Requirement to have Health Insurance
The following individuals are not required to have health insurance:
- Individuals with a qualifying religious exemption
- Individuals who are in a health care sharing ministry
- Individuals not lawfully present in the United States
- Individuals who are in prison