The enrollment process for ACA coverage in 2016 ended on January 31st.
Do you know the tax penalties rates for 2016 if you’re not compliant?
The Obamacare penalties for failing to purchase a compliant health insurance started in tax year 2014.
In order to encourage people to get appropriate coverage, this year the Government substantially increased the penalty you will have to pay if you did not enroll to an ACA plan.
Following is the schedule of ACA penalty taxes:
2014: The higher of $95 per person (up to 3 people, or $285) OR 1.0% of taxable income.
2015: The higher of $325 per person (up to 3 people, or $975) OR 2.0% of taxable income.
2016: The higher of $695 per person (up to 3 people, or $2,085) OR 2.5% of taxable income.
In 2017 Tax Penalty will increase by the rate of inflation going forward | or 2.5% of your household income that is above the tax return filing threshold for your filing status (whichever is greater).