I THOUGH YOU DIDN’T HAVE TO HAVE INSURANCE ANY MORE?
Unfortunately, Kevin DeHart’s Tax Service wants to remind you that this is not true and you may feel it in the pocket-book when you do your 2017 Tax Return early next year. The reason is that Congress has not been able to repeal/replace ObamaCare; therefore, the law remains and requires you to have health insurance, Medicaid, or Medicare. Open Enrollment at www.healthcare.gov begins Nov.1st-Dec. 15th.
What if I can afford health insurance but choose not to buy it? As the law stands now, you must pay a fee called the individual shared responsibility payment. (The fee is sometimes called the “penalty,” “fine,” or “individual mandate.”)
You owe the fee for any month you, your spouse, or your tax dependents don’t have qualifying health coverage (sometimes called “minimum essential coverage”).
You pay the fee when you file your federal tax return for the year you don’t have coverage. In this case, if you didn’t have coverage in 2017, the fee is paid in 2018 when you file your 2017 Tax Return.
In some cases, you may qualify for a health coverage exemption from the requirement to have insurance. If you qualify, you won’t have to pay the fee.
The fee for not having health insurance in 2017 & 2018
The fee is calculated 2 different ways – as a percentage of your household income, and per person. You’ll pay whichever is higher. The fee rises with inflation. Final 2018 amounts will be published when available.
Percentage of income:
2.5% of household income
Maximum: Total yearly premium for the national average price of a Bronze plan sold through the Marketplace
Per person for 2017 (2018 has not been released)
$695 per adult (2017 rate)
$347.50 per child under 18
Paying the fee:
Using the percentage method, only the part of your household income that’s above the yearly tax filing requirement is counted. Using the per-person method, you pay only for people in your household who don’t have insurance coverage.
If you have coverage for part of the year, the fee is 1/12 of the annual amount for each month you (or your tax dependents) don’t have coverage. If you’re uncovered only 1 or 2 months, you don’t have to pay the fee at all. There is a “short gap” exemption you could be eligible. Contact our office for more information.
You pay the fee when you file your federal tax return for the year you don’t have coverage.
For Further Questions, please feel free to contact our me at Kevin DeHart’s Tax Service at one of my 3 locations: 985-876-3799 | 985-746-5370 | 6519 W Main St., Houma or in Metairie, 504-885-3799. Or visit my website at www.KevinDeHartsTaxService.com