Do I have to pay Obamacare Penalty if Unemployed?
Do I have to pay Obamacare Penalty if Unemployed
A lot of unemployed persons have become so worried as a result of the Obamacare penalty, a pay a tax penalty for not having health insurance coverage. They keep on asking “Do I have to pay Obamacare penalty if unemployed?”
This post will proffer the appropriate response to the question, Do I have to pay Obamacare Penalty if Unemployed?, so that the unemployed will be well guided about the issue.
Obamacare penalty and the unemployed
Here is the response to the question raised:
As long as you don’t have income, you are not required by the government to get health coverage and you won’t pay an Obamacare penalty. In reality, if you are unable to make sufficient money that is required to file a federal tax form, you won’t be penalized. The tax-filing threshold is $10,000 for an individual, $20,000 for a family.
The Tax Cuts and Jobs Act popularly known as Tax Reform won’t abolish the Affordable Care Act penalty until tax year 2019. Before then, the Affordable Care Act penalty will still be applicable to 2017 and 2018 returns.
However, assuming that you land a job and what you earn is sufficient to file a federal tax, you will be required to find out and confirm if you are eligible to purchase health insurance.
The Unemployed, Low Income Earners and Tax Exemption
The Affordable Care Act stipulates that you should either get health insurance coverage or pay a penalty on your taxes. However, this does not apply to those who are eligible for an exemption based on their situation.
When you shop for health insurance and discover that the cheapest policy you can get costs more than 8 % of your income, you are not obliged to get health insurance. In a situation like this, you will be given an exemption from the coverage requirement when you file your taxes. However, if your income is beyond 8% of your income, you require coverage or face an IRS penalty. Learn about health coverage exemptions here.
As an unemployed, you will be unable to see a doctor and receive health care. However, you may qualify for a tax exemption based on your income. If health insurance is a financial burden, you may even qualify for Medicaid.
Medicaid is the Answer
A way out of this situation is Medicaid. The program has been expanded to low-income adults without children, not just families, children or certain disabled or elderly adults.
You can visit the HealthCare.gov and chose the option that reads “see plans before I apply.” Follow the steps to determine:
• Available plans in your locality.
• The cost of each plan.
• The available subsidy attached to each plan.
For more information please call ObamacareQuotes today at (800) 811-2640