As of January 1, 2014 it is mandated everyone must be covered by a health insurance plan that meets the minimum essential coverage guidelines. The tax associated with this will be present next year during tax season. If you do not have coverage in 2014 you may have to pay the greater of:
- $95 per adult who is not covered and $47.50 per child who is not covered (This will have a limit of $285 for a family in 2014)
- Or 1% of household income above the tax return filing threshold
For example: If a family of five does not have insurance coverage with a household income of $80,000. The tax will be the greater of $285 or $597 (1% of $59,700 (income amount above threshold)). Therefore, they will owe a tax of $597 for not having insurance coverage in 2014.
If you have further questions regarding this topic you can refer to the IRS Website or contact our office for more information.