When filing your 2016 tax returns, you could face a sizeable fine if you and/or your family are without health insurance.
The Affordable Care Act mandates that anyone that has gone without health insurance for a span of three months or more is subject to paying a fine. The penalty this year has increased to equal the greater amount of $695.00 or 2.5% of an adult’s income. For every child under 18 without health insurance, the penalty is half that of an adult’s.
This penalty is deducted from any income tax refund you may be eligible for. It would be unfortunate to be burdened by such a penalty and have it get in the way of the potential tax refund you look forward to receiving every year.
There are, however, exceptions to the rule.
You may qualify for an exemption if you fall under any of the following categories:
- Individuals and families who fall under the income-tax federal threshold would be exempt, or receive the necessary subsides to offset the costs of the health insurance.
- If you are unemployed and are unable to find coverage costing less than 8% of your adjusted gross income, you would be exempt from penalties as well.
- You may also qualify for a hardship if you are homeless or have been evicted in the last six months.
We encourage you to review this information carefully so that you can make good decisions for you and your family.
Please note, Open Enrollment for 2017 begins on November 1st 2016. Feel free to contact us today to discuss the options that best fit the needs of you and your family, as the penalty will be the same for next year.