61 Out of Work Obamacare Penalty ADVICE??

Mar 12, 2016

  1. otherguy
    Offline

    otherguy New Member

    Posts:
    1
    Likes Received:
    0
    I've been out of work for almost a month, and continuing with my former employer's plan would cost me nearly a grand a month. I've seen claims that not having insurance for the month or two ( :-) ) I'd be out of work would cost me more in penalties than having insurance. I've been told also that a "bridge" policy may not be ACA compliant and still stick it to me with penalties. Another opinion is that getting minimal policy would be about 600 bucks a month. We paid off everything except our mortgage in the past couple of years when income was high. Wife is on medicare (71) with health problems. I get medication for BP, blood sugar, but am in pretty good shape otherwise. I've gotten scads of advice that basically sums up to "Well, what do YOU want to do?" I'd love to get opinions, and some sort of low-down on what the tax penalties will be for me in 2016. Is it REALLY going to end with my tax penalties being more than just getting something from one of the ACA exchanges? Seems the bottom of the barrel policy is still about 600 bucks.

    Any advice?

    Thanks!!
     
    otherguy, Mar 12, 2016
    #1
  2. pbbaseball
    Offline

    pbbaseball Guru

    Posts:
    699
    Likes Received:
    0
    Tax penalties are capped at the cheapest bronze plan, but simple quick math would be to take your household income, subtract 10k, and multiply it by 2.5% to get the ballpark tax penalty, with a minimum of 695.
     
  3. yankee466
    Offline

    yankee466 Guru

    Posts:
    717
    Likes Received:
    61
    State:
    Georgia
    The rule says that you can only NOT have approved insurance for less than three months to avoid penalties. I have clients that will wait until March every year to get coverage, or get a short term plan (if healthy enough) for 2 months, and then sign up in March when their income is high enough to worry about penalties.
     
  4. cowgoesMoO
    Offline

    cowgoesMoO Super Genius

    Posts:
    179
    Likes Received:
    0
    State:
    Florida
    Just don't pay the "shared responsibility payment". The only way they can collect it is from a refund. If you simply refuse to pay it there is nothing the IRS can do. They can't garnish wages, put a lean on property, or punish you in any way. The more you know about the shared resposibility payment, the less you'll care about it.
     
  5. somarco
    Offline

    somarco GA Medicare Expert

    Posts:
    29,774
    Likes Received:
    3,735
    State:
    Georgia
    I don't believe they can put a lien either.

    Personally, I steer clear of offering tax advice but that's just me.
     
    somarco, Mar 13, 2016
    #5
  6. YouGotMyMoney
    Offline

    YouGotMyMoney Guru

    Posts:
    5,026
    Likes Received:
    127
    State:
    Florida
    Especially when your not getting paid for the "tax advice".
     
Loading...