Are you one of the 6 million owing an Obamacare penalty?

Posted By on Feb 1, 2015 | 0 comments

If you were not covered by insurance during 2014, you could be one of the estimated 6 million people filing taxes who will owe a penalty for not having health insurance. If you were covered by someone else’s insurance or by Medicare, then that is not considered uninsured. You didn’t have to actually be paying premiums to count as coverage, you simply had to be covered by health insurance somehow.

Many people had to use the exchanges to get coverage. But the IRS is expected to assess a penalty to as many as 6 million taxpayers for tax year 2014. Of course, technically the IRS terms this an ‘Individual Shared Responsibility Payment’–but in practical terms everyone considers it a penalty since it seems to meet the definition.

Some people will get tax credits to offset some of the costs of the ACA healthcare exchange plans. Hopefully you were covered by health insurance last year so your tax bill doesn’t hit you by surprise with an extra ‘shared responsibility payment’.