What happens if you didn’t have health insurance last year:
Telling the IRS whether you and others in your family had health insurance coverage in 2015 is now part of the tax filing process. The IRS also receives a report from the health insurance exchanges, employers, and health insurance carriers which enables them to verify whether or not a citizen had health coverage in the previous year. If you or anyone in your family was not covered last year, you will be required to pay a penalty. You’re considered covered for any month you had minimum essential coverage for even one day. If you were uncovered for less than two months of the year, you will not have to pay the penalty.
In 2015 the penalty was $325 per uncovered adult and $162.50 per uncovered child, with a maximum of $975 for a family. Either that or 2% of individual income above the filing threshold ($20,600 for a family), whichever is greater. The penalty will rise again in 2016.
When you owe a penalty, the IRS will subtract the amount of the penalty from any refund owed to you. If you’re not owed a refund this year, the penalty stays on your record and will be withheld from future refunds you may have.
If you’re looking for a health insurance agent Vancouver WA to help make sense of all these unfamiliar regulations, contact Your Insurance Gal and talk to one of our friendly and knowledgeable insurance brokers.