Under Obamacare, you and your dependents must be covered by a health insurance policy that provides "minimum essential coverage." Health insurance you get from an employer provides this level of coverage, as do government health insurance programs such as Medicaid and Medicare. Any policy you buy through the online marketplaces set up under Obamacare also gets you minimum essential coverage. A health insurance provider can tell you whether a policy offers minimum essential coverage.
Take a look at the following list. If any of these apply to you, you may be exempt:
Your income is so low that you aren't required to file a tax return. For example, single taxpayers in 2014 don’t have to file if their income is $10,150 or less; for married couples, it’s $20,300. This amount changes each year.
You can't find affordable insurance. The law defines affordable as a policy that costs no more than 8 percent of your income.
For example, if your full shared responsibility payment was $480 and you were uninsured for half the year, you would pay half of that $480, or $240. In most cases, you'll calculate and make your shared responsibility payment when you file your income tax return.
Calculating the payment
The shared responsibility payment is being implemented gradually over a number of years:
For 2014, the full payment is $95 for each adult, $47.50 for each child, up to a maximum of $285 -- or 1% of your household income, whichever is higher
For 2015, the full payment is $325 for each adult, $162.50 for each child, up to a maximum of $975 -- or 2% of your household income, whichever is higher
For 2016, the full payment is $695 per person, $347.50 for each child, up to a maximum of $2,085 -- or 2.5% of your household income, whichever is higher
After 2016, the household income percentage remains at 2.5%; the per-person amounts and the household maximum will rise with inflation.
PHANTOM POWER Marketing professionals are not certified accountants. We’re hoping the information provided in this article will help get these valuable deduction opportunities on your radar so you can increase your Tax Refund. Please be sure to consult with your tax adviser to see if you qualify for a particular credit or deduction.