Penalties go up for opting out of health insurance coverage
This year as millions of Americans file their tax returns, many who didn't have health insurance are going to be slapped with a penalty. That penalty could be more than you think.
Some people figured they'd just pay the fine thinking it's the cheaper option, but the penalty for not having health insurance can get complicated and the penalty is going up.
It's is either a flat fee of $95 for each uninsured adult in 2014, plus $47.50 for each child, up to $285.00 for the household, or 1% of the annual household income above the filing threshold - whichever is higher(Only the amount of income above the tax filing threshold, about $10,000 for an individual, is used to calculate the penalty).
When you file your taxes next year, for 2015, you're facing $325 per adult, $162.50 per child, up to $975 per household, or 2% of the household income above the filing threshold.
Penalties for 2016, even higher yet. The penalty will be $695 per adult, half that for each child, and up to $2,085 per household, or 2.5% of the adjusted household income - again, whichever is higher.
Depending on how much your household earn, it's not as simple as a flat fee. For many it could get complicated when it comes time to file their taxes.
Click here for a link to more information about the fee you could be charged if you didn't have health insurance in 2014.