Did you have health Insurance in 2015?
If not, you could be penalized when filing your 2015 federal income tax return.The Affordable Care Act requires almost everyone to have minimum essential health insurance coverage. Unless you qualify for an exemption, the penalty could reduce your refund or if you owe taxes at the end of the year, the balance owed could increase.
The penalty in 2015 is calculated one of two ways. If you or members of your household don’t have insurance that qualifies as minimum essential coverage you'll pay whichever of these amounts is higher:
|UP TO A MAXIMUM OF $975 OR||2% OF YOUR ANNUAL HOUSEHOLD INCOME, WHICHEVER IS GREATER|
There are several exemptions that can be claimed on your tax return; however some of them require you to apply with the marketplace and get approved prior to filing. Depending upon your circumstances, the health insurance marketplace exemptions can include: financial hardships, religious, medical and some personal reasons. Tax return exemptions may include: Income below threshold, Not a U.S. Citizen, Incarcerated, Member of an Indian tribe or Health Care sharing Ministry, or Denied Medicaid in a non-expanded Medicaid state. Qualifying for an exemption will either lower your tax penalty or eliminate it altogether.
The deadline to apply for 2016 Marketplace insurance is January 31, 2016. If you miss this deadline, you can still apply for health insurance outside the Marketplace. The penalty for not having health insurance more than doubles this year, so make sure you are insured!