Obamacare Penalty

Obamacare Penalty

Chicago CPA and attorney Brian J. Thompson on The Affordable Care Act Penalty also know as the Obamacare Penalty.

2015 Obamacare Penalty

In 2015, the penalty for failure to have health care insurance is $325 or 2 percent of taxable income.

2016 Obamacare Penalty

In 2016, the penalty for being uninsured rises to the greater of $695 or 2.5 percent of taxable income for someone who goes without health care insurance coverage for a full 12 months.

Obamacare Forms

In addition, starting early in 2016, you may receive certain health care coverage forms.  These new health care forms provide information related to preparation of your federal income tax return.  Also, like Forms W-2 and 1099, these new forms will be provided to the IRS by the entity that provides the form to you.  Especially relevant, are the following new forms:

Form 1095-A, Health Insurance Marketplace Statement.

The Health Insurance Marketplace sends this form to individuals who enrolled in coverage there with detailed information about the coverage.

Form 1095-B, Health Coverage.

Health insurance companies send this form to covered individuals and it details coverage information.

Form 1095-C, Employer-Provided Health Insurance Offer and Coverage.

In addition, certain employers send Form 1095-C to their employees, with information about what coverage the employer offered. Employers that offer “self-insured coverage” send this form to covered individuals and it details coverage information.

Finally, consult a Chicago CPA for more info regarding the Obamacare penalty and income tax preparation penalty.