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Where is the source of this understanding? You're generally good at providing a source.
ObamaCare ACA Tax Penalty for 2015 & 2016
- Thread starter AllenChicago
- Start date
Where is the source of this understanding? You're generally good at providing a source.
I think Allen is probably referring to the part of the law that says the only way the IRS can "go after" the penalty is by deducting it from refunds. They're not allowed to use all of their normal tax collection methods to get the penalty from someone who isn't receiving a refund. Not so much as that it's "optional" as that the IRS can't chase it.
Ref: Can You Really Ignore the Obamacare Penalty? - DailyFinance
- Thread starter
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Thank-you MWoodbrid. I sometimes forget that there are newer agents here. From the article you referenced, here's the wording that makes it optional...
"Specifically, the law forbids the IRS from using its typical collection actions, including filing a notice of a tax lien. Ordinarily, that would allow the IRS to attach a lien to items including bank accounts, personal assets, or even your wage income. Moreover, the IRS isn't allowed to impose any other penalties related to unpaid taxes or to begin criminal prosecution proceedings for failure to pay the penalty voluntarily."
If I as a consumer were going to break the law by not having health insurance, I certainly wouldn't step up to pay an optional penalty-tax.
ac
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Don't they just take from any refund you're due? yup.
So you have to never have to have a refund in the future?
So you have to never have to have a refund in the future?
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Business Owners don't usually get refunds, LGilmore. We PAY money to the IRS every year. Most employees in America get refunds, but they also have health insurance.
I've gotten 2 refunds in my life, I always seem to owe money.
Just takes a simple request to have your employer not withhold taxes. I know quite a few people that choose to go this route.
One estimates her taxes and deposits it into her stock portfolio every paycheck. At tax time, she withdraws what she owes. She makes a few thousand dollars extra in the process. Time value of cash and all that.
Just takes a simple request to have your employer not withhold taxes. I know quite a few people that choose to go this route.
One estimates her taxes and deposits it into her stock portfolio every paycheck. At tax time, she withdraws what she owes. She makes a few thousand dollars extra in the process. Time value of cash and all that.
She must be a genius stock picker. Do you mind asking her which stocks she's picking that makes her a few thousand dollars each year on just her tax withholdings?
FXCM was the latest big winner off her tips. Bought in the first week of December, sold out 3 weeks later, went from $6.70 to over $18 (missed the high/low, but I'm not crying about it). I bought a bit over $2000 and sold for $5500.
She told me to sell everything at that point. I didn't listen, waiting for Q1 financials so I can sell on news of profit. Portfolio lost over 10% due to the ripples of the China circuit breaker incident and it's been slow to come back.
Some people are just good at making stock calls. I'm not one of those people apparently.
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uMMMM you might want to think that comment through a bit as to how it applies. First off, we're talking about the penalty to individuals for individual health insurance. So your examples really don't apply do they?
We're not talking about the penalty for group as it wouldn't be applied on an individual basis, would it?
So Al, you're right, except for the topic being individual penalty. Not every individual in America is a business owner. no?
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Right LGilmore. Only the Individual Shared Responsibility Payment is under discussion here. If you are a business owner, and/or as Ray alluded to, are an employee with your personal exemptions set properly, there will be no, or minimal, refund for the IRS to "ding" for the Penalty-Tax $$$.
And you're correct in stating that not every American is a business owner. But there are so many legal ways around paying the penalty-tax for not having health insurance, only relative few Americans end up paying it. What's being discussed in this thread is just one of them.
