Health Insurance Tax Penalties: How will they be Determined and Paid

Health Insurance Tax Calculator

This calculator provides information on how much your Health Insurance Tax would be in the years 2014, 2015, and 2016. The Tax fee will increase gradually over the next three years. The final tax amount will equal 2.5%. If you input your information and you are eligible for a subsidy you will receive a credit to help you purchase insurance, you can also use our Health Insurance Subsidy Calculator to calculate what your subsidy would be. Please note this tool only provides you an estimate. This information is based on the information obtained through the IRS, changes to the regulations and requirements tend to change, please always check with your accountant, and legal representative.

Health Insurance Tax Penalties: How will they be Determined and Paid

The first penalties will be due in 2015 for the 2014-year. A penalty will be determined by calculating the greater amount of either a flat dollar amount or set percentage of income. The annual penalties for 2014 through 2016 are phased in over those years, starting in in 2017 the penalties will increase based on the cost of living.

  • 2014: Greater of $95 per adult and $47.50 per child under age 18 (maximum of $285 per family) or 1% of income over the tax-filing threshold
  • 2015: Greater of $325 per adult and $162.50 per child under age 18 (maximum of $975 per family) or 2% over the tax-filing threshold
  • 2016: Greater of $695 per adult and $347.50 per child under age 18 (maximum of $2,085 per family) or 2.5% over the tax-filing threshold

If the case where the penalty applies for less than a full calendar year, the penalty will be pro-rate on a monthly basis. This calculator assumes the maximum charge at 1, 2, 2.5% of your income. The calcular does not calculate between the flat fee vs the set percent maximum. Your charge may be much lower than what is estimated in this tool. This is a reference tool only, and as greater detail are provided with regards to the law the calculation will become more accurate. Any financial question you have should be discussed with your financial advisor, or accountant.

Tax Filing Threshold. The level of income at which filing units of specific size and filing status first pay a tax before considering tax credits. The amount varies with filing status, allowable adjustments, deductions, and exemptions. Tax credits can further increase the amount of untaxed income.

How to use this tool

1) Simply place the amount of your income over the Tax filing threshold. The tool will calculate this information for you. You will pay this amount or which ever is higher. $95 in 2014, $325 in 2015, and $695 in 2016 this will be your payment.

Health Insurance Tax Subsidy Calculator

If you are eligible for a subsidy; please use our subsidy Calculator to calculate your eligible subsidy amount.

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