You will be subject to a 2% of your MAGI ‘fine’ (TAX) in 2015 for not purchasing a "Qualified Health Plan" under the PPACA “Obamacare”.
If you are self employed and do not over pay your taxes you will not pay that ‘fine’ (TAX) for the only recourse the IRS has to collect that fine is to hold your tax refund. All criminal penalties for non compliance were removed from the health care law prior to passage.
If you don’t have a ‘Qualified Health Plan’ in 2015, you’ll pay the higher of these two amounts:
- 2% of your yearly household income. (Only the amount of income above the tax filing threshold, about $10,000 for an individual, is used to calculate the penalty.) The maximum penalty is the national average premium for a bronze plan.
- $325 per person for the year ($162.50 per child under 18). The maximum penalty per family using this method is $975.
There are maximum penalties for individuals and families. They are significant. To determine your maximum penalty click here.
