The 2014 tax year was the first year that people with no health insurance had to pay a penalty. Because there were so many caught off-guard, a special enrollment period was opened to help people get health coverage for 2015.
The penalty for not having health insurance, or an exemption, last year was $95 per adult and $47.50 per child (up to $295 for a family) or 1.0% of family income, whichever is greater. The penalty for not having health insurance, or an exemption, this year will be $325 per adult and $162 per child (up to $975 for a family) or 2.0% of family income, whichever is greater.
Everyone who does not have an exemption needs to purchase health insurance to avoid paying a penalty when they file their 2015 taxes next year.
Today’s guests are Graham McCaulley and Brenda Procter. Both are associate professors of finance for University of Missouri Extension.