The PPACA Penalty Fee in 2014 Misinformation
A lot of people think that all they have to pay is $95 in 2014 to get around the PPACA. The $95 penalty is true if you make < $19,650 in Household income and this comes after your deduction of $10,150. The individual shared responsibility payment is capped at the cost of the national average premium for the bronze level health plan available through the Marketplace in 2014.
The penalty in 2014 is calculated one of 2 ways. You’ll pay whichever of these amounts is higher:
- 1% of your yearly household income. (Only the amount of income above the tax filing threshold, $10,150 for an individual, is used to calculate the penalty.) The maximum penalty is the national average yearly premium for a bronze plan.
- $95 per person for the year ($47.50 per child under 18). The maximum penalty per family using this method is $285.
The way the penalty is calculated, a single adult with household income below $19,650 would pay the $95 flat rate. A single adult with household income above $19,650 would pay an amount based on the 1 percent rate. (If income is below $10,150, no penalty is owed.)
The Individual Shared Responsibility Payment – An IRS Overview
what would happen if everyone just paid the “penalty” and insisted the money be used to fund single payer?
It may be helpful if you listed all of the exemptions. In addition what is the penalty for not paying the tax? If you pay all of your federal taxes except the ACA tax can the IRS file a lien or garnish your wages?
LJ:
Perchance, did you click on the link? Why not and take a chance that the answer(s) to your questions might be there.
Little John: One might hear the drone but the hellfire missile is supersonic so ya won’t hear or feel a thing.
Ok. The law forbids the IRS from using liens or garnishments . And according to a CMS technical memo dated March 5, 2014 non compliant policies will be grandfathered until 2016. So I guess the only thing the Shared Responsibility thing hurts are the uninsured that the ACA was supposed to help. Am I the only one who finds that ironic?
Yes run I read the rules. Unfortunately it didn’t address all of the exemptions. It also doesn’t address the extension of non-ACA compliant insurance plans. The memo also did not indicate that if your policy was cancelled due to non compliance you are subject to an exemption. An exemption is also in order if your policy was cancelled and you could not afford an ACA compliant policy.
LJ:
The exemption for hardship always existed. The exemption for canceled policies (which is BS) is still pretty new. If you are not covered by Medicaid due to your “state being stupid,” you are exempt also (this always existed).
From the present link, you can learn this:
– What is the maximum a family can pay?
– What is the maximum an individual must pay?
Another link: https://www.healthcare.gov/what-if-someone-doesnt-have-health-coverage-in-2014/
Run
i am guilty of being a little short with people myself. but i make a distinction. one is not “stupid” for failing to understand the law.
neither is one stupid or lazy for not clicking a link.
i can’t say the same about authors who wish to be understood but expect their readers to do all the work.
coberly:
I can provide the water; but, I can not force you to drink (especially you). For some reason you expect people to hand it to you and by far, you are not the pinnacle of patience when it come to understanding SS and the TF or arguing it with you.
The purpose of this post was to make sure people understood there was another way to calculate the penalty which was cited initially and is also in the link. There are also maximums which are cited in the link. A prerequisite to understanding is the need to read which many Republicans wish not to do and in turn make up stories to confuse the public. It is not going to be handed to you the same as SS information isn’t going to be. One has to make the effort.
I suggest you reread my answer to LJ and what I called stupid.
Coberly: AGREED.
The IRS may not be able to place liens or garnish your wages, but they sure as hell can report you to the credit bureaus. Good luck with that John Galt.
There is an article in Forbes covering reasons one could use to avoid the lack of insurance penalty: Naked Capitalism carried it here: http://www.nakedcapitalism.com/2014/03/links-32014.html “14 Ways To Avoid The Obamacare Tax Forbes” http://www.forbes.com/sites/scottgottlieb/2014/03/19/14-ways-to-avoid-the-obamacare-tax/