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Will I be fined for not having health insurance?

Health Insurance topics including Obamacare & Health Insurance quotes

Will I be fined for not having health insurance?

Postby artek » Sun Aug 19, 2012 2:59 pm

I'm currently living outside of the U.S. and I do not have health insurance because I can't afford it. I will be moving back to the US within the first few months of 2014 without a job.

Will I be fined for not having health insurance while I am abroad, or immediately when I return? Is there a grace period I get to find a job that provides insurance so I am not fined? How would the government even know that I am not living in the U.S.?
artek
 
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Joined: Thu Mar 31, 2011 6:53 am

Will I be fined for not having health insurance?

Postby sawyers29 » Sun Aug 19, 2012 3:10 pm

The new law creates penalties in the tax code as an incentive. So if you file an income tax return you will be required to show that you have health insurance.

Those without coverage pay a tax penalty of the greater of $695 per year up to a maximum of three times that amount ($2,085) per family or 2.5% of household income. The penalty will be phased-in according to the following schedule: $95 in 2014, $325 in 2015, and $695 in 2016 for the flat fee or 1.0% of taxable income in 2014, 2.0% of taxable income in 2015, and 2.5% of taxable income in 2016. Beginning after 2016, the penalty will be increased annually by the cost-of-living adjustment.

Exemptions will be granted for financial hardship, religious objections, American Indians, those without coverage for less than three months, undocumented immigrants, incarcerated individuals, those for whom the lowest cost plan option exceeds 8% of an individual’s income, and those with incomes below the tax filing threshold.
sawyers29
 
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Will I be fined for not having health insurance?

Postby hwitcumb » Sun Aug 19, 2012 3:15 pm

The new law creates penalties in the tax code as an incentive. So if you file an income tax return you will be required to show that you have health insurance.

Those without coverage pay a tax penalty of the greater of $695 per year up to a maximum of three times that amount ($2,085) per family or 2.5% of household income. The penalty will be phased-in according to the following schedule: $95 in 2014, $325 in 2015, and $695 in 2016 for the flat fee or 1.0% of taxable income in 2014, 2.0% of taxable income in 2015, and 2.5% of taxable income in 2016. Beginning after 2016, the penalty will be increased annually by the cost-of-living adjustment.

Exemptions will be granted for financial hardship, religious objections, American Indians, those without coverage for less than three months, undocumented immigrants, incarcerated individuals, those for whom the lowest cost plan option exceeds 8% of an individual’s income, and those with incomes below the tax filing threshold.
You will report your insurance on your tax returns and if you are employed and on a group policy your employer will report your insurance.

The regulation is written to allow you three months grace period without insurance but it is also left up to the Secretary of Health to make a final determination. She can extend or restrict that grace period at will.
hwitcumb
 
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