Infographic: ACA Penalties and How to Qualify for an Extension

There’s a lot to know about the Affordable Care Act, including the penalties for not having health coverage. Download this infographic by Liberty Tax Service for tips.

Learn about the fines and exemptions for the Affordable Care Act.

1. Understand The PenaltyACA Penalties and How to Qualify for an Extension

  • In 2014, the penalty for not purchasing health insurance was 1% of taxable income, or $95 per adult and $47.50 per child.
  • In 2015, the penalty was 2% of taxable income, or $325 per adult and $162.50 per child.
  • In 2016, the penalty was 2.5% of taxable income, or $695 per adult and $347.50 per child.
     

2. Check if you’re exempt

Certain circumstances may relieve you from having to pay the penalty, including…

  • If you’ve been uninsured for less than 3 consecutive months
  • If the lowest available plan exceeds 8% of your income
  • If your income is low enough that you’re not required to file a tax return
  • If you’ve experienced a financial or other type of hardship
     

3.How To Apply For An Exemption

Use Liberty Tax’s Online Health Insurance Exemption Guide or visit your local Liberty Tax Service location to apply for an exemption in person.

About the Author

Liberty Tax Service logoMore than 140 million people file taxes in the U.S. each year, and more than half use a professional tax preparer. These consumers are served each year at Liberty Tax locations across the country – and our numbers are growing. Opening a tax franchise doesn’t require tax expertise. Liberty’s proven system provides the tools and makes the tax business a great business opportunity. Since 1997, Liberty Tax has grown to more than 4,300 offices in the United States and Canada. Find out more about the Liberty Tax opportunity at LibertyTaxFranchise.com.