What Does Health Care Have to Do with Your Taxes?
Seeing your tax return, you can be assured to establish your own financial responsibility when enrolling on health insurance. The financial and tax situation often determines the amount of your expected contribution to the health insurance marketplace; the amount of tax penalty if you have no health insurance; and the amount of financial assistance that you may receive from purchasing health insurance.
It may look like with the case of Angie and Kevin. They took their jobs of being a waitress ad truck driver. As for Kevin, he earns twenty-thousand dollars while Angie earns ten thousand dollars every year. When their annual incomes are combined, they may make it to thirty-thousand dollars. They have their one child named Robert, who has no health insurance yet. It is approximately estimated that their monthly contribution for the marketplace plan is one-hundred four dollars.
In 2014, it is expected that they will have to pay a penalty of two-hundred thirty-eight dollars which is quite expensive. In 2015, it may likely increase for eight hundred thirteen dollars. While in 2016, their penalty is estimated at around one-thousand seven-hundred thirty eight dollars. Considering the amount, it may pile up and may become a big expense for them. There is a need to pay for the monthly contribution or else they will suffer from paying the huge amount of penalty fees.
Another example is for Brent who has just graduated from his college years; he took the time to become a graphic designer. He earns for forty-one thousand dollars per year and he is single. As his employer does not likely provide health insurance, he still has health insurance from a private plan. His expected monthly contribution on the marketplace plan is three-hundred twenty four dollars.
If he is unable to pay for his monthly contribution, he may be required to pay for three-thousand dollars by 2014. In 2015, the amount is expected to pile up for almost six-hundred twenty dollars. In 2016, it may end up for about seven-hundred seventy-five dollars.
Another example is for Theresa and John; with John who worked at a technological company. He also earns fifty-seven thousand dollars for every year. As for his wife who is a teacher, she earns thirty-six thousand dollars for every year. They have their income of ninety-three thousand dollars with four children that age two to twelve. As they have their health insurance, the children are still uninsured. As for them, their monthly contribution in the marketplace plan is about seven-hundred twenty-three dollars.
Once the kids are not still covered on the health insurance, the tax penalty will reach for about seven-hundred thirty dollars in 2014; one-thousand four-hundred sixty dollars in 2015; and one-thousand eight-hundred twenty five dollars in 2016.
As you can see, there is a need to pay for the penalty. As for all individuals, they must establish their financial responsibilities or else they may destabilize their financial situation and tax obligation, for this matter.