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No-Insurance Tax Penalty Increase

The annual tax penalty for not carrying health insurance in California will increase in 2015 to $ 325 per adult and $ 162.50 per child, or, 2 % of your annual income (whatever is higher). The maximum penalty will be $975 per family  or roughly 2 % of total income depending on the family income. In 2016, the annual penalty will become $695 per adult and $347.50 per child, with a max of $ 2085 per family , or about 2.5% of total income depending on family income.

Coverage is assessed on a monthly basis or prorated. You will only owe penalty costs for the months you did not obtain coverage. This penalty will not be tax deductible.

If you don’t currently have health insurance, there’s a window for enrollment currently ending February 15, 2015 to purchase health care plans through Covered California or outside the exchange.

For many Americans there will be subsidies available to help pay for the health insurance when enrolling in the healthcare exchange. To figure out if you qualify for a subsidy you need just to find out your modified annual gross income of your 2013 1040 tax form. Use this helpful subsidy calculator.

Solid Health Insurance Services can find you affordable health insurance in California. We can assist you with the enrollment process through Covered California or outside the exchange. We will make sure that you can continue seeing your doctor and hospital of choice!

 

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