Procrastinators of the world, this is your second chance if you’ve been dragging your feet on health care insurance.
Failure to have health coverage this year could add hundreds of dollars to your 2015 tax bill.Feb. 15 was supposed to be the last day for enrolling in a health care plan to satisfy the requirements of the Affordable Care Act, thereby avoiding a tax penalty next year. Then last month the Obama administration announced it would reopen the federally facilitated insurance marketplaces March 15-April 30 for those learning this tax season that they would have to ante up for not having compliant coverage in 2014. State-run marketplaces in 14 states and the District of Columbia were expected to do the same.
Most of those who continue to buck the system will face a fine that’s roughly double that of last year’s: 2 percent of net income or $325 per adult/$162.50 per child, whichever is greater. In most cases, that’s likely to be the 2 percent – $800 or more, based on average income and typical deductions for the owner-operator clients of financial services provider ATBS.
Read more about dealing with the Affordable Care Act in this report from Senior Editor Todd Dills or a more tax-based focus from ATBS.
