The Moritz Group, PC
Certified Public Accountant
How does the Affordable Care Act (Obamacare) affect my family and me?
Individual Mandate
You are required to maintain health insurance coverage for yourself and any of your dependents. This requirement is referred to as the individual mandate.
The mandate is satisfied if you and your dependents have any of the following:
1. Most employer-based coverage
2. Most private major medical plans
3. Medicare
4. Medicaid
5. CHIP
6. "Obamacare" insurance policies purchased through the online marketplace
7. "HIP" Healthy Indiana Plan, for Indiana residents
8. Other insurance that meets ACA standards
If you are not covered with health insurance that meets the ACA standards, you may have to pay a penalty. This penalty is called a shared responsibility payment.
Individual Shared Responsibility Payment
The shared responsibility payment is basically a penalty for not having ACA compliant health insurance. If you owe this penalty, it must be paid at the time your income tax return is filed.
The amount of the penalty is the higher of 1 and 2, or 3:
For the 2015 Year For the 2016 Year
1. $325 per adult 1. $695 per adult
2. $162.50 per child 2. $347.50 per child
or or
3. 2% of your household income 3. 2.5% of household income
above the filing threshold above the filing threshold
You will not be fined the shared responsibility payment if you qualify for an exemption. You claim the exemption on your income tax return, or by filing an application before you do your tax return. This depends on the type of exemption. To see a list of exemptions from the Individual Shared Responsibility Payment, visit the IRS.gov and Healthcare.gov websites below.
Premium Tax Credit
If you are not offered health insurance coverage through your employment, Medicare, or another source, then you may be eligible for a tax credit to pay for coverage.
Eligibility requirements for the premium tax credit:
1. You cannot be claimed by another person.
2. You cannot file your income tax return as "Married Filing Separately." (Except in very few
circumstances)
3. You are not eligible for employer-sponsored coverage.
4. You are not eligible for other government-sponsored coverage.
5. Household income must be between 100% and 400% of the federal poverty line (for your
household size).
You can obtain this tax credit by purchasing health insurance coverage through an online markeplace set up by the government. This online marketplace is found at Healthcare.gov.
For More Information
For more information, please visit the websites below.