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Health & Fitness

Do You Have a Sleeping Tax Penalty for 2014? If you know someone who lacks health insurance...read this!

Craig Froley, Neighbor

Beginning in January, 2014, virtually everyone will be required to have health insurance or face a potential penalty. The initial penalty will be $95 per individual, $285 per family or 1% of your income whichever is greater. There is also a potential penalty assessed on employers who fail to offer employees health care insurance.

What is not known is whether there will be some penalty grace period due to all the sign up problems with the government's web site. If you are uninsured, your best defense is to review your health insurance options and register for an appropriate health insurance policy as soon as possible.

What you need to know

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Every state is required to have an insurance exchange. This exchange is a web site where everyone can view health insurance options. If you need to shop for a policy, this is a good place to start.

No pre-existing condition limitation. Remember you are no longer to be refused insurance because of a pre-existing condition. Nor can you be charged an incremental premium based on health or gender.

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Buy or pay the penalty? Hopefully, not many will be faced with this dilemma. Part of the health insurance legislation is the requirement for most small businesses to offer a qualified plan or face a penalty billed to their business.

Will I be penalized? There are exceptions to the penalty if you have to spend more than 8% of your household income on the cheapest health care insurance premiums. There are also subsidies if you cannot afford health care insurance. This is in the form of a health insurance premium tax credit if your household income is between 100 and 400 percent of the federal poverty level.

If you do not have health insurance start looking now. Remember this penalty may already be impacting you. With proper planning you should be able to avoid the unpleasant task of facing a tax penalty surprise at the end of 2014.



Posted by:

Froley Tax Services
24672 San Juan Avenue Suite 103
Dana Point, CA 92629
Phone: (949) 489-2088
Fax: (949) 266-9931
www.froleytax.com
craig@froleytax.com

This publication provides summary information regarding the subject matter at time of publishing. Please call with any questions on how this information may impact your situation. This material may not be published, rewritten or redistributed without permission, except as noted here. This publication includes, or may include, links to third party internet web sites controlled and maintained by others. When accessing these links the user leaves this publication. These links are included solely for the convenience of users and their presence does not constitute any endorsement of the Websites linked or referred to nor does Froley Tax Services have any control over, or responsibility for, the content of any such Websites. All rights reserved.
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