Monday, January 2, 2017

The fee for not having health insurance in 2016 & 2017

The fee is calculated 2 different ways – as a percentage of your household income, and per person. You’ll pay whichever is higher.

Percentage of income

· 2.5% of household income

· Maximum: Total yearly premium for the national average price of a Bronze plan sold through the Marketplace

Per person

· $695 per adult

· $347.50 per child under 18

· Maximum: $2,085

Paying the fee

· Using the percentage method, only the part of your household income that’s above the yearly tax filing threshold ($10,300 for individuals, $20,600 for couples filing jointly in 2015, the most recent year available) is counted.

· Using the per-person method, you pay only for people in your household who don’t have insurance coverage.

· If you have coverage for part of the year, the fee is 1/12 of the annual amount for each month you (or your tax dependents) don’t have coverage. If you’re uncovered only 1 or 2 months, you don’t have to pay the fee at all.

· You pay the fee when you file your federal tax return for the year you don’t have coverage.