As the 2015 tax filing season approaches, the shared responsibility tax (Obama Care Penalty Tax) for 2014 has been a concern of many Taxpayers. The annual payment is:
The greater of:

  • 1 percent of your household income that is above the tax return filing threshold for your filing status, or
  • Your family’s flat dollar amount, which is $95 per adult and $47.50 per child, limited to a family maximum of $285.

Individuals who are waived from paying this tax are listed below.

  1. Unaffordable coverage options. People who would have to pay more than 8% of your household income, or more than 9.5% after employer contributions for the employee only, even with the Health Care Marketplace discount (subsidies).
  2. No Filing Requirement. People with incomes below the threshold required to file a tax return in 2015.
  3. Hardship. If you have suffered a hardship that has been certified by the Health Insurance Marketplace.
  4. Short Coverage Gap Exemption. If go without coverage for less than three consecutive months during the year you will not responsible for the fee for those months. Also, if you applied through the marketplace between March 15th and March 31st 2014 and coverage didn’t start until May 1st
  5. Religious conscience. People who qualify for religious exemptions. The Social Security Administration administers the process for recognizing these exemptions according to the criteria in the law.
  6. Health care sharing ministry. You are a member of a recognized health care sharing ministry.
  7. Undocumented immigrants. You are not a U.S. Citizen, a U.S. national or an alien lawfully present in the U.S.
  8. Incarceration.  People who are incarcerated.
  9. Indian tribes.  Members of a federally recognized Indian tribe.

The percentages and flat dollar amounts increase over the first three years. In 2015, the income percentage increases to 2 percent of household income and the flat dollar amount increases to $325 per adult ($162.50 per child under 18). In 2016, these figures increase to 2.5 percent of household income and $695 per adult ($347.50 per child under 18). After 2016, these figures increase with inflation.

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