Will I Get Penalized For Not Having Health Insurance?
Healthcare is one of the most important aspects of our lives, and it’s no wonder that so many people are scrambling to secure coverage before the Affordable Care Act (ACA) goes into effect next month. But even if you have health insurance, is it a good idea to skip the doctor’s appointments? Or the emergency room? The answer, unfortunately, is that there is no one-size-fits-all answer to this question. In fact, depending on your situation, you might actually end up getting penalized for not having health insurance. This post will explore some of the penalties you might face if you don’t have health insurance and how to minimize their impact. By reading it, you’ll be in a better position to make an informed decision about whether or not to purchase health insurance before the ACA goes into effect.
What is the penalty for not having health insurance?
According to the Health Insurance Portability and Accountability Act of 1996 (HIPAA), individuals who do not have health insurance are subject to a fine of up to $695 per person per year. In addition, the individual may also be subject to civil liability for any medical expenses that result from not having health insurance.
Who is exempt from the penalty for not having health insurance?
According to the Affordable Care Act (ACA), people who are exempt from the penalty for not having health insurance are:
-People who are uninsured for less than three months in the year.
-People whose income is below 250% of the poverty line.
-Children who are under 18 and their parents, or legal guardians, who have coverage through a government program like Medicaid or CHIP.
-People with disabilities.
How does the IRS determine if someone has health insurance?
The Internal Revenue Service (IRS) considers a person to have health insurance if the person has any of the following:
A policy or certificate of coverage that provides at least one hundred fifty dollars ($150) per month in hospital, doctor, and other medical expenses.
A policy or certificate of coverage that provides at least sixty-six dollars ($66) per month in doctors’ fees and related services.
A plan that covers at least sixty-six dollars ($66) per month in doctors’ fees and related services.
If you do not have any of these types of policies or certificates, then you may be considered uninsured and could face tax penalties. The penalty for being uninsured is 0.5% of your taxable income for each month you are uninsured. For example, if your taxable income is $10,000 per year, the penalty for being uninsured would be $50 for each month you are uninsured.
What happens if you don’t have health insurance and are caught by the IRS?
If you don’t have health insurance, you may be penalized by the IRS. The penalty for not having health insurance is a flat tax of $695 per adult and $347.50 per child in 2014. If you qualify for a hardship exemption, the penalty is reduced to $325 per adult and $162.50 per child. To claim the exemption, you must file Form 8965 with your federal tax return.
What can you do to avoid getting penalized for not having health insurance?
There are a few things you can do to avoid getting penalized for not having health insurance. First, make sure you have all of the required documentation. Second, if you can’t afford health insurance, look into affordable options. And lastly, be sure to update your information with your employer and the IRS if you change your address or lose your job.
