Affordable Care Act Penalties - KAUZ-TV: Newschannel 6 Now | Wichita Falls, TX

Affordable Care Act Penalties

Posted: Updated:
There are tax penalties for people who did not meet the open enrollment March 31st deadline for the Affordable Care Act.

"It's the greater of $95.00 per adult and $47.50 per child.  Or the greater of one-percent of your household income," said Owner of Financial Partner, Kelly Fristoe.

"If you're married, it's what your spouse makes and it's what you make.  If you have children who work and you claim them on your income tax return, whatever your children make in income that they have to report to the I.R.S. That is also included as household income," said Fristoe.

In 2015, the penalty amount will essentially double from one-percent to two-percent.

"In 2016, the tax penalty will escalate to 2.5-percent of your household income and beyond 2016 it will be increased according to the consumer index and inflationary index. We don't know what those numbers are yet because they have not been set," said Fristoe.

There are two important facts to know about the Affordable Care Act tax penalties. One, people who are 100-percent of the federal poverty level are exempt. Also, there is a tax penalty cap.

"The cap is the premium that it would have taken to purchase a bronze level plan for that person.  Whatever that premium is per year, that is the cap," said Fristoe.

 Individuals who have a life qualifying event can qualify to have temporary based coverage through the Affordable Care Act, but it will only last for a maximum of six months.

The next open enrollment period for health care coverage under the Affordable Care Act will begin November 15th, 2014.  

Taylor Barnes, Newschannel 6