Alright, I hate to be the bearer of bad news about the Obamacare penalty, but hopefully this message will help you protect yourself, your family, and your bank account before it’s too late. Did you know that the Affordable Care Act (AKA Obamacare) requires people to sign up for health insurance or pay a tax penalty (unless they qualify for an exemption)!? The deadline, January 31st, is quickly approaching! And I know we’ve been talking about this a lot lately, but you may be surprised by the amount of people that haven’t heard anything about it.
Don’t shoot the messenger, but if you opt out and don’t sign up for health insurance by the January 31st deadline, you may be fined as part of your federal tax filing. Plus, you’ll pay for all the costs of your medical care on your own. For most people, that’s no fun. Trust me on this one.
In addition to that, you may not be able to get health insurance until the next enrollment period unless you have some kind of qualifying event. For higher income earners, this fine alone could total thousands of dollars. Here are some key facts about the penalty:
- To avoid paying a tax penalty you must sign up for health insurance no later than January 31st. If you miss this deadline, you’ll have to wait until the marketplace reopens in November.
- The tax penalty for not having insurance:
- In 2016, the minimum penalty is $695 per person per year or 2.5% of your income, whichever is greater. The maximum penalty for a family is capped at no more than 300% of the minimum penalty (i.e. $695 x 300% = $2,085).
- In 2017, the tax penalty will increase by the rate of inflation going forward, or 2.5% of your income, whichever is greater.
- The tax penalty for not having insurance is paid as part of your federal tax filing at the end of the year. If your taxable income is below 133% of the federal poverty level you are exempt from this tax.
Listen, anything could happen so we just want to make sure that you are informed about the Obamacare penalty – and protected with health insurance coverage. So don’t stress, but don’t wait until the last minute, either! We have licensed agents and representatives standing by 24/7 to answers your questions and get you signed up over the phone or in person.
Act fast and call us at (800) 304-3414.