Affordable Care Act (Obamacare) Penalties and Fees

Individual Penalty for not having Health Coverage

Beginning in 2014, individuals who do not have health coverage will be assessed a penalty at the time of their tax return filing. The individual penalty for not having health coverage in 2014 will be $95 (or a maximum of $285 per family).In 2015 this will increase to $325 for an individual ($975 per family) and in 2016 it will be $695 per individual ($2,085 per family).
Information from Health insurance Companies will provide the IRS with documentation to confirm or deny the existence of health coverage.

An alternative penalty may be considered if there is a high gross family income. The income (if over $200,000) is multiplied by the penalty factor and the higher penalty is applied. Penalty factors are 1% 2014, 2% 2015 and 2.5% 2016.

Exemptions from Mandate

This includes religious organizations, and non-residents aliens.

Exemptions from Penalties

This includes households that cannot afford premiums, and that fall below the income tax filing threshold. It also includes Native Americans, persons living outside the USA, dependents, and special hardship cases.

Premium Assistance Credit

The Premium Assistance Credit is available for taxpayers with household incomes between 100% and 400% of the Federal Poverty Level. The credit can either be applied against health insurance premiums or it can appear as a refund on the tax return.