The Individual Shared Responsibility Provision of the Affordable Care Act (ACA) requires you and each member of your family, for each month of the year, to have “qualifying health insurance,” (minimum essential coverage) or make a payment when filing your tax return. The penalty is reported on Form 8965 and carries over to Form 1040 Line 61.
For 2014, the annual shared responsibility payment amount is the greater of: 1% of your household income above the filing requirement threshold, or the family flat dollar amount: $95 per adult and $47.50 per child, up to a $285 family maximum. This penalty is supposed to approximate the national average premium for a bronze level health plan. .
“Minimum Essential Coverage” includes: .
Employer-sponsored plans, including COBRA and retiree coverage.
Coverage purchased in individual market or the new Marketplace.
Coverage under specified government sponsored programs such as Medicare. .
The penalty for not carrying qualified health insurance increases significantly for 2015 and beyond. The point is: Get Covered!
