24.2 C
New York
Friday, June 21, 2024

Understanding 2016 Charges for No Well being Insurance coverage

Printed on December 11, 2015

Do you know that having medical health insurance when you possibly can afford it’s the regulation? If you happen to can afford medical health insurance, however select to not get it for 2016, you could be required to pay a charge — generally referred to as the “penalty,” “nice,” or “particular person mandate” — once you file your 2016 federal revenue taxes.

The excellent news is, inexpensive protection by the Well being Insurance coverage Market® is out there. After monetary assist, 7 out of 10 individuals can discover plans with premiums of lower than $75 {dollars} monthly. If you happen to enroll by December 15, 2015, your protection will begin January 1, 2016.

Need to see plans and costs obtainable to you earlier than you apply? You possibly can preview 2016 plans and costs right here — you could be stunned to be taught simply how inexpensive medical health insurance might be.

Breaking it down: the charge

Listed below are 5 fast information in regards to the charge for not having well being protection when you possibly can afford it:

  1. The charge is calculated 1 of two methods, relying in your state of affairs. It’s both a share of your annual family revenue or a set quantity for every particular person in your family who doesn’t have medical health insurance. While you file your federal revenue taxes, in the event you’re uninsured for greater than 3 months regardless of accessing inexpensive protection, you’ll be required to pay whichever quantity is greater. Learn to estimate the charge you’ll should pay in the event you don’t have medical health insurance primarily based in your state of affairs.
  2. The charge is rising for 2016. For 2015, the penalty for no medical health insurance is $325 per particular person or 2% of your annual family revenue – whichever is greater. For 2016, the charge is $695 or 2.5% of your revenue — whichever is greater. For many individuals, that’s greater than the yearly price of well being plans they will discover on HealthCare.gov.
  3. Each month with out protection counts. The charge is calculated primarily based on the variety of months you and your family went with out . The extra months you go with out well being protection, the upper the charge, as much as the utmost. (However in the event you’re uncovered for just one or 2 consecutive months, you don’t should pay the charge in any respect.)
  4. For some individuals, exemptions from the charge can be found. Individuals with very low incomes and people who meet different particular situations can get an exemption from the requirement to have medical health insurance and gained’t should pay the charge. Be taught extra exemptions, and see in the event you qualify.
  5. You will have till January 31 to enroll in a 2016 plan to keep away from the charge. The ultimate deadline to enroll in 2016 protection is January 31. A Particular Enrollment Interval across the April 15 tax submitting deadline gained’t be supplied in 2016. If you happen to don’t enroll by then, you possibly can have to attend one other yr to get protection and should should pay the charge once you file your 2016 revenue taxes.

Prepared to use and keep away from the charge?

Related Articles


Please enter your comment!
Please enter your name here

Latest Articles