The Affordable Care Act is coming into full effect in 2014. This could mean that uninsured individuals have some choices to make that could have tax implications. Enrollment for health insurance under Obamacare, as the health reform act is popularly known, goes through March 31, 2014. If you don’t buy an insurance plan, you could face a penalty.
Affordable Care Act Taxes Penalties Information
The open enrollment period to purchase health insurance coverage for 2014 through the Health Insurance Marketplace runs from Oct. 1, 2013, through March 31, 2014. If you are seeking information about how to obtain health care coverage or financial assistance to purchase health care coverage for you and your family, visit the Health and Human Services website, HealthCare.gov.
ObamaCare Penalty under ACA
The charge for failure to get insurance under the affordable care act is 2014 is either 1 percent of your yearly household income or $95 per uninsured adult and $47.50 per child, up to $285 for a family.
If you get health insurance coverage through the Marketplace, you may be able to lower your monthly premium through an advance payment of the premium tax credit. This credit is for people who have household income between one and four times the federal poverty level. Find out more about the Premium Tax Credit and other Affordable Care Act tax provisions.
Affordable Care Act tax provisions
The premium tax credit is an advanceable, refundable tax credit designed to help eligible individuals and families with low or moderate income afford health insurance purchased through the Health Insurance Marketplace, also known as the Exchange, beginning in 2014. You can choose to have the credit paid in advance to your insurance company to lower what you pay for your monthly premiums, or you can claim all of the credit when you file your tax return for the year. If you choose to have the credit paid in advance, you will reconcile the amount paid in advance with the actual credit you compute when you file your tax return.