The penalty for being uninsured in 2014 is $95 or 1 percent of income, whichever is greater. Next year, it’s 2 percent.
By April Dembosky, KQED and Jeff Cohen, WNPR
Are you thinking about tax day yet? Your friendly neighborhood tax preparer is.
“This year taxes and health care intersect in a brand new way. ‘
Sue Ellen Smith manages an H&R Block office in San Francisco, and she is expecting things to get busy soon.
“This year taxes and health care intersect in a brand new way,” Smith says.
For most people, who get insurance through work, the change will be simple: checking a box on the tax form that says, “yes, I had health insurance all year.”
But it will be much more complex for an estimated 25 million to 30 million people who didn’t have health insurance or who bought subsidized coverage through the exchanges.
To get ready, Smith and her team have been training for months, running through a range of hypothetical scenarios. One features “Ray” and “Vicky,” a fictional couple from an H&R Block flyer. Together they earn $65,000 a year, and neither has health insurance.
“The biggest misconception I hear people say is, ‘Oh the penalty’s only $95, that’s easy,’” says Smith, but the Rays and Vickys of the world are in for a surprise that will hit their refund. “In this situation, it’s almost $450.” Continue reading