ILLMAS Posted January 12, 2015 Report Share Posted January 12, 2015 What will be the penalty for this family for not having health insurance for the year? Facts: Chris & Amy under 65 Sam & Pat are 5 & 8 Total income was $65,000 Federal Withholding $8,600 Please post how you arrived to your answer. Quote Link to comment Share on other sites More sharing options...
Lynn EA USTCP in Louisiana Posted January 12, 2015 Report Share Posted January 12, 2015 I used CFS Tax Tools Module - ACA Individual Mandated Health Insurance Penalty - to calculate this. I don't know how they came to the answer, after answering the questions on their worksheet. The annual penalty is the greater of 1.0% of income above the filing threshold (determined to be $20,300), OR $95 per adult (half for children), capped at 3 adults ($295). So, $65,000 less $20,300 equals $44,700 x 1.0% = $447 2014 penalty Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted January 12, 2015 Report Share Posted January 12, 2015 I am with Lynn on this one. The 2014 penalty is the greater of 1.0% of income above the filing threshold or a minimum of $95.00 per adult and $47.50 for each child capped at $285.00. $65,000 - $20,300 (assuming MFJ) = $44700 X 1%= $447.00. Hmm, wondering why the amount of Federal WH was given? Quote Link to comment Share on other sites More sharing options...
Lynn EA USTCP in Louisiana Posted January 12, 2015 Report Share Posted January 12, 2015 I think the W/H was given as a red herring. Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted January 12, 2015 Author Report Share Posted January 12, 2015 Great observation, I just threw in that figure, has nothing to do with calculating the penalty. Quote Link to comment Share on other sites More sharing options...
easytax Posted January 13, 2015 Report Share Posted January 13, 2015 Agreed on numbers with one explanation (I used "Tax Policies Calculator" at: http://taxpolicycenter.org/taxfacts/acacalculator.cfm ). Not stated but assumed to get the answer we received: Family was considered married filing jointly. Should all the "household" income have been from other than "married filing joint" (still with dependents, kids, etc.) the numbers do change. Thanks for question as I had "forgotten" about the penalty aspect (current clients ALL have insurance) but it now "easy" to find/look-up for new ones that do not have insurance, etc. . 1 Quote Link to comment Share on other sites More sharing options...
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