With it now being a requirement that everyone has to have health insurance, you aren’t saving yourself any money by thinking you can just go without it. If years go by and you don’t have health insurance, the penalties you pay will increase. So, what are your penalties for the 2015 tax season? It is 2% of your household’s annual taxable income, or $325 per adult and $162.50 per child, with the maximum you’ll pay being $975. Whichever is higher.
To some of you, it may still be cheaper to not have health insurance, but again the penalties will continue to increase each year. For example, for the 2016 tax season, the penalty will increase to 2.5% of your household’s annual taxable income, or $695 per adult and $347.50 per child, with the maximum you’ll pay being $2,085. Whichever is higher. That is a $1,110 increase from this current tax season!
It’s inevitable that everyone needs health insurance, and quite frankly, I don’t know why you would want to go without it. It gives you the peace of mind in knowing that should something happen to you, you have some financial help so you’re not having to pay for everything out of pocket. Also for individuals who make a certain amount of money, you qualify for a tax credit to assist you in paying for your health insurance.
Are you still without health insurance? If so, you have until January 31st to apply for 2016 coverage. But your coverage will not officially start until March 1st.
A Mazzo Accounting provides a variety of accounting services to individuals and businesses in the Wyomissing, Reading, West Reading, Sinking Spring and Kenhorst areas as well as towns and villages around the Greater Reading area. Our services for small to mid-size businesses include taxes, payroll, accounting and bookkeeping services. We also provide a variety of services for individuals and they include tax return preparation as well as some accounting assistance.