What is the Obamacare Penalty for 2018?
What is the Obamacare Penalty for 2018
The Affordable Care Act, or ACA, mandated most Americans to purchase health insurance. However, not everyone signed up, while some sign up but fail to keep their coverage. Millions of people are expected to pay a tax penalty for not having health insurance. It is a fee that’s sometimes called the Obamacare penalty. Hence, “What is the Obamacare penalty for 2018?”
Numerous people across the United States have been eager to know the consequences for not complying with this directive. This post will proffer suitable response to the question, what is the obamacare penalty for 2018, so that you can be well informed ahead of time.
Obamacare Tax Penalty
Staying beyond three full, consecutive months without health insurance implies payment of tax penalty for that year. If you have coverage for just a day in a month, it counts as a month with health insurance.
This will be illustrated further:
Assuming you go without health insurance for all through April and May, but decided to buy health insurance which becomes effective on the last day of June, you would not be subject to a tax penalty. The reason being because you didn’t go without a health plan for three full, consecutive months.
Cost of Obamacare penalty
Obamacare penalty is can be calculated in two different ways. It considers whichever is greater either as a percentage of your total household adjusted gross income or a flat rate.
The cost of Obamacare penalty for 2017 is 2.5% of your total household adjusted gross income, or $695 per adult and $347.50 per child, up to a maximum of $2,085. In addition, the Obamacare penalty for 2018 and beyond has not been announced, but is expected to increase.
You can determine the extent of your penalty by using a tax preparer or tax software.
Exemptions from Obamacare penalty
Those that are eligible for exemption under the ACA will not be charged for not getting health insurance coverage. You will be exempted from Obamacare tax penalty if:
• The cheapest coverage is beyond 8.13% of your household income.
• For less than three consecutive months within a year, you avoid coverage.
• You are exempted from filing a tax return due t extremely low income.
• The religion you practice goes against health insurance.
• You’re in prison.
• You are a member of health care sharing ministry.
• You are away from the US for over a year.
• You are eligible for a hardship exemption as a result of circumstances that are listed here.
Avoid a Penalty, Buy Health Insurance
You can get your coverage at the health insurance marketplace. Check this out at Healthcare.gov. You will be able to find plans and prices that suit you. You may also be directed to your state’s marketplace.
The 2018 Open enrollment for ACA health plans is over. However, you may be able to sign up if you have a qualifying life event, such as a recent marriage, divorce or birth.
For more information please call ObamacareQuotes today at (800) 811-2640