What is the penalty for lacking health insurance in 2015?

Penalty for Lacking Health Insurance in 2015: What You Need to Know

The Affordable Care Act, commonly known as Obamacare, requires all Americans to have health insurance or face a penalty. The penalty for lacking health insurance in 2015 was the greater of two amounts: either 2% of your household income or $325 per person in your household, with a maximum penalty of $975. However, understanding the rules and exceptions to this penalty can be confusing. In this article, we will break down everything you need to know about the penalty for lacking health insurance in 2015.

Who Was Required to Have Health Insurance?

Under the Affordable Care Act, all Americans were required to have health insurance or face a penalty, with a few exceptions. If you were uninsured for less than three months of the year, you were exempt from the penalty. Additionally, some individuals and families were exempt from the penalty if they met certain criteria, such as having a low income, experiencing a hardship, or belonging to a religious group that opposed health insurance.

How Was the Penalty Calculated?

The penalty for lacking health insurance in 2015 was calculated in one of two ways: either 2% of your household income or $325 per person in your household, with a maximum penalty of $975. The penalty was prorated based on the number of months you were uninsured, so if you were uninsured for only part of the year, your penalty would be reduced accordingly.

How Was the Penalty Enforced?

The penalty for lacking health insurance in 2015 was enforced by the Internal Revenue Service (IRS). If you did not have health insurance and did not qualify for an exemption, you would have to pay the penalty when you filed your federal income tax return for that year. The penalty was assessed on a per-person basis, so if you were uninsured and had dependents, you would have to pay a separate penalty for each uninsured person in your household.

How Has the Penalty Changed Since 2015?

Since 2015, the penalty for lacking health insurance has changed several times. In 2016, the penalty increased to the greater of 2.5% of your household income or $695 per person, with a maximum penalty of $2,085. However, in 2019, the penalty was effectively eliminated when the Tax Cuts and Jobs Act repealed the individual mandate, which required all Americans to have health insurance or face a penalty. As a result, there is no longer a federal penalty for lacking health insurance, although some states have their own individual mandates.

What Does This Mean for You?

If you were uninsured in 2015 and did not qualify for an exemption, you may have had to pay a penalty when you filed your federal income tax return. However, if you are currently uninsured, there is no longer a federal penalty for lacking health insurance. It is still important to have health insurance, however, as it can protect you and your family from the high costs of medical care. There are many options for affordable health insurance, including through your employer, the Health Insurance Marketplace, or Medicaid.

In Conclusion

The penalty for lacking health insurance in 2015 was the greater of 2% of your household income or $325 per person in your household, with a maximum penalty of $975. The penalty was enforced by the IRS and prorated based on the number of months you were uninsured. While there is no longer a federal penalty for lacking health insurance, it is still important to have coverage to protect yourself from the high costs of medical care. If you need help finding the right health insurance plan for you and your family, consider speaking with an insurance advisor or broker.