The end of the year is just around the corner, so that means that tax time is coming up, too.
As you prepare your accounts for the end of the year, keep your health insurance needs and spending in mind. If you were able to file for 2014 taxes without penalty, don’t assume that your 2016 taxes will be the same. Many consumers were surprised last year when they were subject to a large penalty for not having health insurance.
The penalty was designed to prod consumers to purchase from the Healthcare Reform Marketplace. However, there was some confusion over what that penalty would be on the part of the consumers. The $95 minimum penalty was taken as gospel.
“People would hear the $95, quit listening, and make an assumption that was what their penalty was going to be,” said Chuck Lovelace of Liberty Tax Service in a Washington Times article last year.
If you were surprised by a penalty for your 2014 taxes, don’t be shocked next year. The penalty is based on household income and not a flat rate. According to TurboTax, the average penalty in 2014 was $301 and is set to rise higher in this next year.