What is the Penalty for Not Having Health Insurance in 2016?

If you went for more than 3 months without health insurance in 2015, you will be assessed a penalty when you file your 2015 income taxes.

Here are the penalty amounts for not having coverage in 2015 and 2016.  Note that not having coverage in 2016 will cost you more than double the 2015 charge:

2015	2016
$325 per adult $162.50 per child Family Maximum of $975 OR 2% household income, whichever is GREATER	$695 per adult $347.50 per child Family Maximum of $2,085 OR 2.5% of household income, whichever is GREATER

The penalty fee will be adjusted for inflation in future years.

Avoid a Penalty in 2016 – Get Covered During Open Enrollment!

Open Enrollment for 2016 health insurance runs from November 1, 2015 through January 31, 2016. You can save yourself a substantial penalty by making sure you have coverage in place for you and your family.

Virginia Medical Plans works with clients in Virginia, Maryland, and the District of Columbia, and can help you find the best coverage for your needs:

• If you live in Virginia and are eligible for a subsidy, visit www.enrollvirginianow.com to view plans and options.
• If you are not eligible for a subsidy, you can view available plans and options by clicking here.

If you see a plan you like, you may enroll online.

We encourage you to take a look at your options and then call our office to review them with our licensed broker.  We can help you choose the plan that will best meet your needs.

Call our office at 703-707-8270. We are standing by to take your call.

The last day to secure coverage effective January 1, 2016 is December 15, 2015.
We expect heavy call volume during Open Enrollment, so please don’t delay! 

Tax Filing with the Affordable Care Act

With January behind us, it’s time to start thinking about filing your 2014 income taxes.

By now, you should have received most, if not all, of your tax forms and notices from your employer(s), banks, mortgage company, financial institutions, etc. — and, if you bought health insurance on the exchange — the Marketplace.

As we posted several weeks ago, the upcoming tax season promises to be complicated for those who received a subsidy on their health insurance, as well as those who did not have coverage for more than 3 months in 2014.

Here’s what to expect:

IRS Form 1095-A – Health Insurance Marketplace Statement

You should have received Form 1095-A from the Marketplace if you or a family member enrolled in health insurance through the health insurance marketplace in 2014.

Part I of Form 1095-A includes details about you — your name, SSN, date of birth, etc. — and your 2014 coverage — the state where you bought it, the name of the insurance company, and the dates your coverage started and ended.

Part II lists the members of your household covered on your plan.  Only those people who you told the Marketplace you would claim on your tax return will be listed here.

Part III details the following, by month:

1. The premium you paid
2. The premium of the second lowest cost silver plan (this will be used when you file your return to help calculate whether or not you received the right amount of subsidy)
3. The amount of subsidy you received (referred to by the IRS as a premium tax credit or PTC).

Line 33 of Part III includes the sum of each column, giving you the annual totals of each — this will come in handy when you’re ready to file!

You will use the data included on Form 1095-A to complete Form 8962 — Premium Tax Credit (PTC).

IRS Form 8962 – Premium Tax Credit (PTC)

If you received a 1095-A, you must complete Form 8962 and submit it with your Form 1040, 1040A or 1040NR when you file your 2014 taxes.

The IRS will use Form 8962 to reconcile whether you received too much or too little in the way of a premium subsidy for your health insurance last year.

You also must file Form 8962 if you were eligible for a PTC but did not collect the subsidy in advance, and now want to claim it.

If the form looks complicated that’s because it’s complicated!

IRS Form 8965 – Health Coverage Exemptions

The Affordable Care Act’s individual mandate requires that most Americans have health insurance by January 1, 2014.

If you did not purchase health insurance in 2014 because you are exempt from the individual mandate, you must complete IRS Form 8965.

Important:  if you have a Marketplace-granted coverage exemption you must provide an Exemption Certificate Number on Form 8965.  It takes some time for the Marketplace to process exemptions, so don’t delay in submitting your request!  Click here for more information.

Tax Penalty

If you were uninsured for more than 3 months during 2014 and you did not have a valid exemption, you will be assessed a penalty tax when you file your 2014 tax return.

The penalty will be equal to $95 per adult plus $47.50 per child, up to a family maximum of $285 OR 1% household income, whichever is GREATER.

The penalty increases for 2015 and 2016.  Click here for details.

The IRS will deduct your penalty from any refund you are due.  And, your penalty amount will be added to your tax bill if you owe money.

Start Early

Because of the extra complications this year, we recommend you get started on your taxes as early as possible.

The IRS has said repeatedly it does not expect to be able to manage the high volume of calls it will receive.  If you’re filing your tax return on your own, your best bet is to get it done quickly and avoid long delays on the IRS’s phone lines as we get closer to the April 15 filing deadline.

Several tax preparation firms have put together helpful information regarding the reporting requirements surrounding the Affordable Care Act.  We encourage you to take advantage of those resources as well!

Please consult a tax professional for specific tax advice.

 

 

 

What are the Penalties for Not Having Health Insurance in 2015?

If you did not have health insurance in 2014, be prepared to pay a penalty when you file your 2014 income taxes next April.

If the penalty for not being covered in 2014 did not seem too high, brace yourself for the dollar amount to rise next year, and the year after.

Here are the penalty amounts for 2014, 2015, and 2016:

2014	2015	2016
$95 per adult $47.50 per child Family Maximum of $285 OR 1% household income, whichever is GREATER	$325 per adult $162.50 per child Family Maximum of $975 OR 2% household income, whichever is GREATER	$695 per adult $347.50 per child Family Maximum of $2,085 OR 2.5% of household income, whichever is GREATER

Avoid a Penalty in 2015

Open Enrollment for 2015 health insurance begins November 15, 2014 and runs through February 15, 2015.  You can save yourself a substantial penalty by making sure you have coverage in place for you and your family.

Give our office a call at 1-800-867-0800 or send us an email at jkatz@vamedicalplans.com to get started today.

Please be patient as we manage a high volume of calls and emails.

Extended Deadline for Health Coverage – What Does it Mean?

The Affordable Care Act (ACA — otherwise known as “Obamacare”) has been front-and-center in the news this month, first for its role in the recent record-long, 16-day shutdown of the US government, and now for the technical glitches that have plagued the online federal health insurance exchange since it opened on October 1.

This week the Obama administration announced a 6-week extension of the deadline for signing up for health coverage.

What exactly does this mean?

The extended deadline means that consumers will not be taxed for not having coverage, as long as they sign up by March 31, 2014.  Originally, that date was February 15, 2014.

We should point out — the requirement for most Americans to have health insurance by January 1, 2014 (known as the individual mandate) has not been delayed.

What the extension does do is allow anyone who purchases coverage during the entire open enrollment period (October 1, 2013 through March 31, 2014) to not face a penalty tax for the time after January 1 that they may have spent uncovered.

Really not much of a change!

Thank you for your patience as we continue to experience a large volume of calls and emails!