Open Enrollment Period for Affordable Care Act insurance plans is
November 1, 2015 – January 31, 2016.
In ObamaCare TAX TALK here are some things you should expect to be different on your 2015 income tax return:
The fee (penalty) for not having health coverage in 2016 will be the higher of these two amounts:
- 2.5% of your yearly household income (Only the amount of income above the tax filing threshold, about $10,150 for an individual in 2014, is used to calculate the penalty.) The maximum penalty is the national average premium for a Bronze plan.
- $695 per person ($347.50 per child under 18) The maximum penalty per family using this method is $2,085.
- Take a look at the chart above
Expect to receive tax forms (Form 1095) reporting your health care information. You’ll need to give that form to your tax preparer this year for sure.
If your income fluctuated during 2015 and you were paying a subsidized healthcare premium, expect that subsidy to be adjusted at tax time… you could end up having to pay part of it back. According to H&R Block after the 2014 tax season:
“Two-thirds of tax filers among its client base who received health insurance coverage under the Affordable Care Act via the state or federal insurance marketplaces had to pay back an average of $729 of the Advance Premium Tax Credit, cutting their potential refund by nearly one-third.”
Depending on your circumstance, you may learn (at tax time) that you
1. have a higher ‘share of responsibility’ than expected
2. must repay part of the ‘premium tax credit’ that you already ‘received’ during the tax year.
#VeryCrazy I know.
Now… there are exemptions, which I won’t go into now, but you can read about them here: 2015 tax year exemptions from the fee for not having health coverage
That’s all for now!