Certified Public Accountant, New Jersey
Manny Forlenza CPA

Tax Penalties

If you’re one of the 45 million or so Americans without health insurance, you will need to get coverage for 2014 by March 31, 2014 or pay a penalty of $95 per person ($47.50 per child) or 1% of your income, whichever is greater. Low-income individuals may qualify for subsidies and/or tax credits to help pay the cost of insurance.

The penalty increases to $325 or 2% of income for 2015 and to $695 or 2.5% of income for 2016. For 2017 and later years, the penalty is inflation-adjusted. Those who choose not to be insured and to pay the penalty instead will still be liable for 100% of their medical bills.

Guaranteed Insurance
Another benefit of the new healthcare law is that a person cannot be denied insurance based on any pre-existing conditions that a person might have. If you can pay the premiums you can get the insurance. The insurance companies are also prohibited from canceling your insurance or raising your insurance premiums if you become seriously ill and are suddenly looking at significantly higher medical expenses.