ObamaCare Penalty Clarified
In my previous post the individual mandate penalty for not enrolling in ObamaCare was described as $95 for an individual. I omitted one important detail. The penalty is actually the higher of $95 or one percent of your income!
Here is a summary of penalties (greater of):
2014 Single $95 or 1%; Family $295 or 1%
2015 Single $325 or 2% ; Family $975 or 2%
2016 Single $695 or 2.5%; Family $2085 or 2.5%
The maximum penalty is capped at three time the individual penalty (eg:95 x 3 = 295). Penalties will be included in your annual income tax and enforced by the IRS.
So it's easy to see after 2014 the penalty (tax) gets very serious.
There are numerous exceptions and hardship exemptions. "Gaming" the rules is likely to occur. See the link to Forbes magazine below.
Please do you own tax research and plan accordingly.
There are two rules for exemptions for living out of the US. One is residence out of US for 330 days in any 12 month period. The other is the "Physical Presence Test" requiring you to live outside of the US for a complete year plus other requirements .
Further details are available at: http://www.forbes.com/sites/mikepatton/2013/10/28/obamacare-penalties-and-exemptions/
So that is another reason to promptly consider your plans for a possible new life internationally.
