Your 2014 tax form is going to look at little different this year. The penalties for not having health care coverage set under the Patient Protection and Affordable Care Act (PPACA), or Obamacare, have kicked in. On line 61 of Form 1040 will ask you if you had health insurance coverage in 2014. If you did not, you may be subject to a penalty.
2014 Penalty structure:
Individuals: $95 per person or 1% of household income, which ever is greater, up to a family cap.
For families with children under age 18, the penalty is $47.50 per child, up to $285 total per family.
The penalties increase in 2015 to 2% of household income or $325 per person. 2016 penalties will be $625 per person (half for children) or 2.5% of income. Family caps will also be in place.
However, it is unclear how many American will actually have to pay the penalty. Click here to read an article by Maggie Mahar outlining the complexities around these calculations. If you were without health coverage or signed up for a PPACA plan, you may want to discuss your tax implications with your accountant.
