# Special One-Time "Obamacare" Alternative to the Tax Penalty: March 15-April 30, 2015



## BBCWatcher (Dec 28, 2012)

*Special One-Time "Obamacare" Alternative to the Tax Penalty: March 15-April 30, 2015*

Tax year 2014 is the first U.S. tax year when there is a special, extra income tax that millions of U.S. residents will have to pay because they had adequate income and but didn't have adequate health insurance. This is called the "Minimum Essential Coverage" rule. For example, on 2014 IRS Form 1040 it's line 61. The tax penalty in tax year 2014 is the greater of $95 or 1% of your income above your filing threshold. (In tax year 2015 the penalty increases to $325/2%.)

The MEC rule does not apply if you were/are not a resident of any of the 50 U.S. states or the District of Columbia.

Have you just discovered this problem as you started to work on your 2014 tax return? Don't like the fact you have to pay a tax penalty because you (or at least one member of your household) didn't have adequate, continuous health insurance coverage in 2014 that meets the "MEC" rule?

U.S. Health and Human Services has a solution for you! Starting on March 15, 2015, and extending through April 30, 2015, there will be a special, one-time, never-to-be-repeated opportunity to sign up for qualified medical insurance for your household at HealthCare.gov _and avoid the tax penalty for 2014_! Your medical insurance starts soon after you sign up and pay your first premium bill (if applicable), so it's best to sign up on March 15 or as soon as possible. You will also have to attest, under penalty of perjury, that you only just recently learned of this MEC requirement. (The exact wording of the sworn statement I don't have yet.) You'll still receive federal subsidies, if you qualify, to help you buy medical insurance, so that doesn't change. And, of course, you'll have good medical insurance in place that covers (at least) catastrophic medical calamities and a range of preventive care services. Most carriers also cover emergency and urgent care while you're traveling outside the U.S.

So if you're one of the stragglers, mark your calendar for March 15, then visit Healthcare.gov on the 15th to read about this limited amnesty program and see if you qualify. Hold off finishing your tax return until then to see if you can skip the penalty for 2014. If you qualify this amnesty program can help you save money on your tax bill and get covered.

But this really is the very last opportunity to avoid the tax penalty.


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