ElectroFile Income Tax Service   Income Tax Service
5200 W Market St
Greensboro, NC 27409
  Terry Hough, President Terry Hough

December 02, 2014

Affordable Care Act

Starting in 2014, everyone is required to have health insurance.

If you don't have minimum essential health insurance coverage the IRS will collect a tax penalty from you.

The penalty is slated to be 1/12th of the greater of:

The penalty will be half of the amount for people under 18 and the penalty is calculated for each month you or your dependent(s) do not have coverage.

Q. What are the exclusions to the penalty?

A.There are exclusions to the penalty that include:

Q. What if someone doesn't have health coverage in 2014?

A. If you don't have health coverage in 2014 you may have to pay a penalty and you must pay for all of your health care. The health care law requires all people that can afford to pay for their health coverage to take responsibility for their own health insurance or pay a penalty. Even if you pay the health care penalty, you won't get health insurance and you will be responsible for 100% of the cost of your medical care.

Open enrollment ends on March 31, 2014. After March 31, 2014 you can get new private health insurance for 2014 only through a special enrollment period if you have a qualifying life event.

To avoid the penalty, you need insurance that qualifies as minimum essential coverage. If you are covered by any of the following below you are considered covered and won't have to pay a penalty:

Q. Who doesn't have to pay the health care coverage penalty?

A. Uninsured people won't have to pay a penalty if they

If you don't qualify for these situations, you can apply for an exemption asking not to pay the penalty.

Form to apply for a hardship exemption

Form to apply for a religious sect exemption

If you'd like to purchase your health insurance through the Health Insurance Marketplace and avoid paying a fee in future tax years, visit www.healthcare.gov .