If You Don’t Have Health Insurance, Expect Penalties Come Tax Time…

The Affordable Care Act, which was created to provide health insurance for all Americans, requires that you have health insurance either through your employer, or get it on your own.

There are still many people who are without health insurance, and that means that they are going to subject to penalties when tax time rolls around. If someone does not have coverage, they will have to provide the IRS with additional information when they complete their tax return.

There will be a series of questions that have to be answered, and those answers will determine how large the penalty will be. The penalties will range from 1 percent of the household income or a flat rate of up to $285.

Considering it is a tax penalty, if you get a return, it would be taken out of that. If you end up owing money, you will have to pay an additional amount, on top of what ever else you owe.

There will be exemptions for people who qualify, which could lower or eliminate the penalty altogether. But, apparently those exemptions are rare.