Individual who go without health insurance in 2015 will face stiffer fines on their 2015 tax return. The base fine for an individual is increasing from $325 per person ($162.50 for each family member under the age of 18), with a cap at $975 per family. That’s an increase of $230 per individual and $690 per family. The fine also has an income-based levy, which doubles to % of the excess of household income over the tax return filing threshold. The fine is the lower of the two amounts.
However, the income levels for those who qualify for the health premium tax credit will increase. Those with household incomes between 100% and 400$ of the federal poverty level ($11,670 – $46,680 for singles and $23,830 – $95,400 for a family of four) will qualify for the credit. Those that are eligible for Medicaid or other types of federal insurance will not qualify for the tax credit.
As in 2014, those individuals receiving their insurance through the federal marketplace will need form 1095-A to complete their tax return. In 2015, taxpayers who receive their health insurance through their employers will need a similar form, ( supposedly 1095-C) which they will receive from their employer, to complete their tax return.