CYA In 2015

Are you one of millions who failed to buy personal health insurance in 2014, then, when filing your 2014 Income Tax forms, learned that you had to pay a penalty tax (the so-called “Shared Responsibility Payment”) for not owning such insurance? Are you still uninsured? If so, you have until April 30, 2015 to apply for 2015 Obamacare health insurance.

To do so, and as part of the application process, you must sign statements saying you paid the penalty tax when you filed your 2014 Income Tax return…including the date when you submitted your return…and that you first became aware of the “Shared Responsibility” tax, or you misunderstood its implications, until after the end of the 2015 Open Enrollment Period (February 15, 2015), and while preparing your 2014 Income Tax return.

The Shared Responsibility Tax goes up in 2015 to the greater of $325.00 or 2% of your Adjusted Gross Income (AGI)…not just your W-2 or 1099 income. The tax hit depends upon whether you are single or part of a family. If you are part of a two-earner family filing a joint income tax return, 2% of your family AGI could be a pretty large number.

While paying Obamacare’s high premiums takes more from your pocketbook over the year than a one-time Shared Responsibility Tax payment, not owning health insurance exposes you and your family to potential bankruptcy if you are hit with a major surgery followed by a week long hospital stay and rehab.

Carpe Diem