Tax time is rarely synonymous with fun time for a lot of people. A good number of individuals have an extra surprise hidden in their 2014 taxes – a tax for not having coverage in 2014. Known as the ‘Shared Responsibility Payment,’ this could be an expensive surprise. Especially since the Shared Responsibility Payment increases over time.
For 2015, the fee is 2% of your household income or $325/person ($162.50 for children); whichever is higher.
If you didn’t have health insurance coverage for 2014 and you were surprised to find out that there is a tax payment for not having coverage as part of filing your 2014 taxes, you’re in luck! For 2015 only, there is a Special Enrollment Period for many people that didn’t have coverage in 2014. In order to qualify for the Special Enrollment Period, you are required to attest to the following:
- You are not currently enrolled in coverage through the Federally Facilitated Marketplace (healthcare.gov) for 2015
- You were required to pay the Shared Responsibility Payment as part of your 2014 tax return
- You first became aware of, or understood the implications of, the Shared Responsibility Payment as part of filing your 2014 tax return after the February 15 Open Enrollment deadline.
If this sounds like you – we should talk. The Special Enrollment Period runs from March 15 – April 30. Guidance from the government has indicated that this is a one time Special Enrollment Period not to be repeated in the future
Webb Insurance does not offer tax advice – this blog is not tax advice. We encourage you to talk with your tax adviser about your specific situation. If you’d like to talk about insurance, that’s where we come in. Give us a call at 800-303-6329 or drop us an email.
The full text of the government press release can be found here.