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ACA Penalty
Old 03-10-2015, 10:35 AM   #1
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ACA Penalty

This is more of a statement then a question, but please feel free to chime in if you have something to add.

I just completed my son's taxes. There were 3 months during calendar year 2014 that he DID NOT have health insurance. I just figured he would be penalized for those months and the penalty would be pro-rated. He was not penalized at all and credited for a full year.

Mike
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Old 03-10-2015, 10:49 AM   #2
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Yes there are number of exemptions which come in to play. Glad it worked out for him

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Originally Posted by wrigley View Post
This is more of a statement then a question, but please feel free to chime in if you have something to add.

I just completed my son's taxes. There were 3 months during calendar year 2014 that he DID NOT have health insurance. I just figured he would be penalized for those months and the penalty would be pro-rated. He was not penalized at all and credited for a full year.

Mike
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Old 03-10-2015, 10:50 AM   #3
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Not so much a penalty, but on H&R Blocks blog, they mentioned that many people were having to pay back some of their subsidy. In my case, I can avoid paying back the subsidy by increasing my IRA contribution. To get it to zero though, I have to reduce my AGI below $15,000, thus forcing me into medicaid for this year. I'll be paying some subsidy back to avoid that!
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Old 03-10-2015, 11:06 AM   #4
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That is allowed as short term gap in coverage, see item 22

Questions and Answers on the Individual Shared Responsibility Provision
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Old 03-10-2015, 11:12 AM   #5
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That is allowed as short term gap in coverage, see item 22

Questions and Answers on the Individual Shared Responsibility Provision

Thank You

Mike
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Old 03-10-2015, 11:16 AM   #6
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Its hard for me to believe that the IRS has access to know whether or not you have health insurance, unless insurance companies are reporting customer information to the IRS now?
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Old 03-10-2015, 11:31 AM   #7
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Its hard for me to believe that the IRS has access to know whether or not you have health insurance, unless insurance companies are reporting customer information to the IRS now?
I received a 1095-A from the Health Insurance Marketplace. This form contained information about when I had coverage, subsidy amounts and who I covered. I had to transfer this information to my 1040 when doing taxes. For 2014, this is how the IRS knew what was going on. I imagine there is an effort to make this form directly available to the IRS just like the various 1099 forms we all know and love.

ETA: The specific form the info goes on in your taxes is form 8962. A value calculated on that gets transferred back to your 1040.
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Old 03-10-2015, 02:47 PM   #8
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Just came home from my yearly CPA tax time visit.

CPA asked: "did you have health insurance for 2014"
Answer: "yes"

CPA said that's all we needed to do for 2014.

For 2015? He said "we'll see"
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Old 03-10-2015, 03:16 PM   #9
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Just came home from my yearly CPA tax time visit.

CPA asked: "did you have health insurance for 2014"
Answer: "yes"

CPA said that's all we needed to do for 2014.

For 2015? He said "we'll see"
If you had workplace insurance (no aca subsidy), it would be just that simple.
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Old 03-10-2015, 03:18 PM   #10
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Quote:
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Its hard for me to believe that the IRS has access to know whether or not you have health insurance, unless insurance companies are reporting customer information to the IRS now?
Not for 2014, but for 2015 yes.
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Old 03-10-2015, 04:23 PM   #11
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I received a W2 from my former employer showing BOX DD as "Cost of employer-sponsored health insurance" not taxable. I think Box DD only applies to large employers (those filing >=250 w2's in the previous year). The new Form W-2 reporting requirement was enacted as part of the Patient Protection and Affordable Care Act.(Obamacare).

I also received the standard 1099-R showing my pension distribution.
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Old 03-10-2015, 05:49 PM   #12
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If you had workplace insurance (no aca subsidy), it would be just that simple.
It wasn't workplace insurance. Just insurance we purchased directly with Anthem. Same for 2015.
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Old 03-10-2015, 07:05 PM   #13
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It wasn't workplace insurance. Just insurance we purchased directly with Anthem. Same for 2015.

I purchased mine directly from carrier also...when filing my taxes with Turbo, all I had to do was check a box stating that I had insurance. This Supreme Court decision coming up about the healthcare act is getting me nervous, being in a state with a federal exchange. I shudder at what the cost of mandated insurance would be with an unfavorable ruling. If it does I won't pay a $1000 a month for a $6500 deductible.
The IRS can then imbed that "tax" in their bowels, I won't pay it. Their only means of collection is confiscating a tax refund and you can bet I won't be having one if this all happens.


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Old 03-12-2015, 07:10 AM   #14
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How much is the *penalty* for 2015 ? ( not 2014)
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Old 03-12-2015, 10:20 AM   #15
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How much is the *penalty* for 2015 ? ( not 2014)
Either 2% of your household income or $325/per adult ($162.50/per minor). Whichever is greater.
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