Monday, January 25, 2016

Did you pay the Obamacare Penalty last year?

Did you pay the Obamacare Penalty last year?
There's a good chance you overpaid!

Beginning in 2014, the Affordable Care Act installed a penalty for individual taxpayers that fail to secure health insurance for themselves and family.  This was well covered by the media.
What was not well covered is that there are many situations that exempt a person from actually paying the penalty.  
In tax year 2014, over 300,000 taxpayers overpaid their shared responsibility fine.  Of that, 83% didn't need to pay at all.  Below are some of the most common exemptions taxpayers qualify for:
  • Insurance is Unaffordable - No penalty due if local insurance rates were a certain percentage of your income.  
  • Housing Troubles - An exemption exists for people that were facing eviction or foreclosure.
  • Medical Debt - If you had a large amount of unpaid medical bills that prevented the affordability of health insurance, you can qualify for an exemption.
  • Death of a Family Member - Fine is waived for individuals who were unable to get insurance while caring and paying for a terminally ill family member. 
There are many more exemptions available as well.  If you overpaid last year or have questions about this year, contact us! By phone (216) 661-4459 or through our website

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