CMS recently announced a new Special Enrollment Period for Tax Season:
“…(CMS) announced today a special enrollment period (SEP) for individuals and families who did not have health coverage in 2014 and are subject to the fee or “shared responsibility payment” when they file their 2014 taxes in states which use the Federally-facilitated Marketplaces (FFM). This special enrollment period will allow those individuals and families who were unaware or didn’t understand the implications of this new requirement to enroll in 2015 health insurance coverage through the FFM.”
Click here to read the full CMS Press Release on their site.
“How does this affect me?”
As many Americans are finding out, 2014 was an important year to have health coverage. If you did NOT have coverage in 2014, whether through group insurance with an employer or Individual coverage, you’ll be paying a penalty when you file taxes this year.
The penalty for not having health coverage in 2014 is 1% of your Annual Household Income or $95 per person (whichever amount is greater).
If the 2014 penalty caught you by surprise and you still do NOT have health coverage (for 2015), listen up:
You have one last chance to get health coverage for 2015 and avoid having to pay the penalty next year on your 2015 taxes!
Here’s why: the penalty for not having health coverage in 2015 will be 2% of your annual income or $325 per person (whichever amount is greater).
So, you have two options:
- Don’t get coverage for 2015 and pay the penalty of 2% or $325 per person (whichever is greater).
- DO get coverage: Pick a plan and get coverage for 2015–this makes certain that you DON’T have to pay the penalty for not having coverage in 2015, though you will have to pay monthly premiums for your plan.
- You might even qualify for an advance tax credit to help lower your monthly premium payments. Click here to see how much you could save
If you choose Option 1, you’ll end up paying money to the IRS without receiving anything in return.
If you choose Option 2, you’ll still be shelling out money–but at least you’d be getting something in return: a healthcare plan that could come in handy this coming year.
Do you qualify for this SEP?
- No current health coverage for 2015
- Paid the 2014 penalty for not having coverage
- Just realized the penalty’s actual impact on your 2014 tax return
If all 3 statements apply to you, there’s still time to get health coverage for 2015!