Monday, February 23, 2015

Millions will OWE Obamacare tax Penalty!

Were you uninsured in 2014? Time to pay up!

Nearly 3 million to 6 million U.S. Citizens will have to pay an additional tax penalty (Shared Responsibility Payment) for not having health insurance last year, as stated by Treasury officials. This the first inclination given on estimates for how many people will be subject to this fine.
The penalty is $95 per person, or 1% of income above a certain threshold (roughly $20,000 for a couple). So you could end up owing the IRS hundreds to thousands of dollars.
For example: a married couple with $100,000 in income would have a penalty of $797, according to the Tax Policy Center ACA tax calculator.

The penalty for remaining uninsured rises to the larger of $325 per person or 2% of income in 2015.
As millions of Americans sit down in coming weeks with Obamacare's health insurance to compile their tax returns, they'll have to contend with this mandate for the first time.
Around three-quarters of the countries 150 million taxpayers have health coverage through their jobs or government programs and will simply have to check a box on their tax return.
Another 15 million to 30 million people will request and be granted an exemption to the mandate by filing Form 8965. Those who aren't subject to the insurance requirement include undocumented immigrants, low-income Americans and those for whom insurance premiums were more than 8% of their household income.
Finally, between 4.5 million and 7.5 million taxpayers received subsidies for insurance premiums when they signed up for coverage through healthcare exchanges. They will be required to fill out Form 8962 to reconcile their actual 2014 income with the amount they estimated when they applied for a policy in late 2013 or early 2014.
Those who underestimated their income will either receive smaller tax refunds or will owe the IRS money.
It is projected that some 3.4 million taxpayers will have to pay back part of their premiums.
Of course, those who overestimated their 2014 income may get a healthier-than-expected refund. And some will see no change at all.