Questions Part IV: Penalties
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- Questions Part I: Training
- Questions Part II: Permissible Guidance Questions
- Questions Part III: Affordable Care Act and Families
- Questions Part IV: Penalties
- Questions Part V: Premium Tax Credits
- Questions Part VI: Other General Questions
If someone decides not to buy health insurance and instead plans to pay the penalty, is it true that their penalty amount will increase over the next couple of years?
Yes. The penalties go up pretty dramatically over the next 3 years. In 2015, the penalty will be $95 for an adult, and half of that for a child, or 1% of your income above the filing threshold, whichever is greater. In three years, the penalty increases to $695 for an adult, with the same variations for children, or 2.5% of your income.
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Other Comments:
If a low-income taxpayer cannot afford health insurance this year and decides to pay the $95 penalty, they should be informed that the penalty will increase drastically in the years to come.People will also have the option to enroll in 2015. It’s also important to note that by paying a penalty, you get nothing. When you pay a health insurance premium, you get some amount of healthcare coverage and have protection against astronomical medical debt if something catastrophic were to happen to you.
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