Americans are starting to get their W-2s and 1099s in the mail, now that the New Year holiday is over. It is time for all “good little Americans” to pay for all the benefits that their government graciously provided (whether they asked for them or not).
As Americans file their tax returns, for their incomes for 2014, they will notice that they must complete a new worksheet.
Form 8965 must be completed by all Americans who did not have government approved health insurance throughout all of 2014.
That form will help them determine how much their “Shared Responsibility Payment” will be when they file their taxes.
The penalty for not having government approved health insurance for 2014 works out to 1/12th of 1% of your household MAGI for each month, excluding 3 months, when you should have had approved health insurance in 2014 but did not. The penalty is capped at the amount the least expensive “Bronze” plan would have cost in your area.
While the penalty may seem small for 2014, it doubles for 2015 and increases again by 25% in 2016. The only way to avoid it is to either be granted an exemption from the Department of Health and Human Services, or buy a government approved health insurance plan either “ON” or “OFF” Marketplace.