Understanding Penalty Exemptions Under Obamacare
Since the recent enactment of the Affordable Care Act, this will be the first year that taxpayers will need to worry about health insurance during tax season. Calculations show that about 2 to 4 percent of taxpayers will be faced with a penalty for failing to obtain health insurance. The only way to avoid these penalties is to qualify for one of these exemptions:
- If your income is below the level of being required to file taxes, you may not need to obtain health insurance based on requirements set forth by Obamacare.
- There are many hardships that make you exempt from the requirement to obtain health insurance, including: being homeless, receiving a shut-off notice from your utility company, experiencing a death of a family member, experiencing domestic violence, being evicted, experiencing a sudden increase in necessary expenses related to carrying for the ill or disabled, and filing bankruptcy in the past 6 months. There are a few more hardships that may exempt you from obtaining health insurance.
- Those who are a member of a federally recognized tribe or are eligible for services provided by an Indian Health Services provider are not faced with a penalty if they do not obtain health insurance.
- There are a few other exemptions, including being incarcerated, being affiliated with a recognized religious sect that has religious objections to insurance, and being a U.S. citizen that is living abroad.
Contact Steve Wilk Insurance Agency in Lombard for all of your Illinois health insurance needs. If you forgot to obtain health insurance during the Obamacare open enrollment period, it is imperative that you start planning today so that you are not faced with a penalty again. We will help you choose the right health insurance policy that maximizes your protection.