Individual Health Coverage Mandate under the Affordable Care Act
The Affordable Care Act (ACA) requires that all individuals must have minimum health coverage in place or face tax penalties.
Individual Tax Penalty Guide
Your Result: You do NOT have to pay a tax penalty.
Because you have health insurance coverage through your employer that is affordable to you, you do not have to pay a tax penalty this year. Your situation represents that of the majority of americans.
Just so you are aware, if you ever have a job change and you do not expect to continue to have insurance through your employer, this creates what is known as a special enrollment period. Starting from the day you lose your prior insurance coverage, you have 60 days to either obtain individual or family health insurance. If you wait beyond this time, and it is available, you will be able to continue on your employers previous plan if you can afford to pay the full cost of the insurance offered through your previous employer. This is known as COBRA. Often this is a very expensive option and, in most cases, you should be able to find more affordable coverage by purchasing an individual plan. And, because no one can be denied coverage due to poor health, individual insurance will always be available to you.
Because a change in jobs, or employment status, can mean a reduction in income, this reduction will usually mean that you now qualify for tax credits which can help bring down the cost of health insurance. Anytime your income changes, and it would mean a change in the amount of the tax credit you receive, you can make a change to the health insurance plan you bought through the exchange. This means you can either buy a better, more expansive, plan or you can change to a less expensive plan. These changes need to be made through the exchange (which we can help you with enrollment) within 60 days or you will have to wait until the next open enrollment period (Nov. 15 - Feb. 15 each year).
Also, if you have other changes in your life that could result in needing to look at purchasing your own health insurance, these events trigger a special enrollment period which also gives you 60 days to change insurance or buy an individual plan.
Just so you are aware, if you ever have a job change and you do not expect to continue to have insurance through your employer, this creates what is known as a special enrollment period. Starting from the day you lose your prior insurance coverage, you have 60 days to either obtain individual or family health insurance. If you wait beyond this time, and it is available, you will be able to continue on your employers previous plan if you can afford to pay the full cost of the insurance offered through your previous employer. This is known as COBRA. Often this is a very expensive option and, in most cases, you should be able to find more affordable coverage by purchasing an individual plan. And, because no one can be denied coverage due to poor health, individual insurance will always be available to you.
Because a change in jobs, or employment status, can mean a reduction in income, this reduction will usually mean that you now qualify for tax credits which can help bring down the cost of health insurance. Anytime your income changes, and it would mean a change in the amount of the tax credit you receive, you can make a change to the health insurance plan you bought through the exchange. This means you can either buy a better, more expansive, plan or you can change to a less expensive plan. These changes need to be made through the exchange (which we can help you with enrollment) within 60 days or you will have to wait until the next open enrollment period (Nov. 15 - Feb. 15 each year).
Also, if you have other changes in your life that could result in needing to look at purchasing your own health insurance, these events trigger a special enrollment period which also gives you 60 days to change insurance or buy an individual plan.
- Moving out of the area of your current insurance
- Family changes like; Marriage, Divorce, Childbirth, Adoption, Death in your immediate family.
- Gained citizenship or released from incarceration
