Updated Saturday, November 1, 2014 as of 8:37 AM ET

IRS Proposes Obamacare Penalties for Non-Coverage

The IRS recently drafted Obamacare regulations that offer some insight into what will be the associated monetary penalties for individuals who do not take up health care coverage.

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Comments (3)
The way the following paragraph reads, at least to me, is that if a person does not obtain health coverage, then the "monthly amount" quoted will be due. That is not my understanding. My understanding is that these amounts are "annual" and not monthly. Keep in mind that the new law allows for three months not to have health insurance. Meaning untill the end of the open enrollment period, March 31st.

"Moreover, if individuals can get on program rolls but choose not to, IRS officials warn that a monthly penalty amount will be due. Under the shared responsibility provision, for individuals who do not have minimum coverage for a specific month, the dollar amount is $95 in 2014, $325 in 2015, and $696 in 2016".
Posted by Francisco G | Monday, January 27 2014 at 2:33PM ET
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Posted by Ricardo W | Wednesday, February 19 2014 at 10:26PM ET
I understood that the IRS was only collecting the 'penalty' by deducting it from the taxpayer's tax refund. They are not contacting the personal, using liens or other collection procedures. So to avoid the penalty, just reduce withholding or estimated tax payments so there is no refund.
Posted by Bert W | Saturday, March 22 2014 at 5:48PM ET
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