I received an email eloquently titled ‘Obamacare’ that
stated the high amount of penalty for not obtaining health insurance. Taking this for granted would have been
against my nature, so I went on doing an online research which yielded the
results outlined below.
According to ABC News, you are not required to
obtain coverage if this presents economic hardship, in which premiums are
greater than 8% of your income.
Furthermore, if you are a
member of American Indian Tribe or if you belong to a religious group that
opposes healthcare (or are incarcerated or an illegal), you are not required to
buy coverage.
You are permitted to go without a coverage for a
three-month period before being liable for the penalty. In 2014, the penalty is $95 or 10% of a
monthly income, however $695 in 2016 - SUCKS!
http://abcnews.go.com/Business/obamacares-uninsured-health-care-penalty/story?id=20901902#1
Now here comes this article titled "If the
Penalty for Uninsured Taxpayers Survives, Good Luck Collecting It" that
naturally piqued my curiosity. It states
that the minimum payment is $95 in 2014, $325 in 2015,
and $695 in 2016. The article further
states that the penalty is a % of the difference between one's household income
and the filing threshold (currently $9,500 for single and $19,000 for married
filing jointly). If for example, a
single taxpayer makes $50,000 a year, then $50,000 - $10,000 = $40,000,
that multiplied by 0.01 (1%) yields $400 in penalty. If a taxpayer is married, then $50,000 - $20,000
= $30,000, and $30,000 x 0.01 = $300.
Not bad, especially considering that this amount is a lot cheaper than buying
insurance if one doesn’t need it (the numbers rounded for the convenience
sake).
The percentages are 1% in 2014, 2% in 2015, and
2.5% in 2016. The article specifically
states that a (single) individual earning $50K a year would be assessed a
penalty of about $400 in 2014, rising to about $1,000 in 2016, still a lot
cheaper than buying insurance.
The article goes on, "these penalties can be
easily evaded." Yep! "Although the act provides that the IRS may not use criminal prosecutions,
notices of federal tax liens, or levies on property to collect an unpaid
penalty," the Obama administration says in its brief, "the IRS may
employ offsets against federal tax refunds. The IRS may also seek payment
through correspondence or phone calls."
In other words, they can harass you a bit, while at the same time being
unable to collect. Treat them as you
would any collector who can't collect.
Pretty much ignore them. When you
receive a letter saying that you owe so much to Uncle Sam, it’s a worthless
piece of junk, toss it. You can also
adjust your withholding throughout a year so that you don't get a refund, and
that's about it. An ounce of prevention
goes a long way.
Read more here:
http://reason.com/blog/2012/03/27/if-the-penalty-for-uninsured-taxpayers-s Really, read it, I hope you enjoy it as much I
did.
