Will the ObamaCare Penalty Affect My 2014 Tax Return? Part I

I have received tons of questions from clients, friends, and families about how much the ObamaCare penalties are.  I am seeing an amount of confusion and worry unsurpassed by any other tax law change in my memory. 

So let’s start with the basics.

The individual mandate is the regulation that requires everyone to have health insurance that covers the “essential benefits”.  If you do not have health insurance, you will be charged a tax penalty.  The IRS has issued regulations that cover in detail the following ObamaCare questions:

1. What qualifies As Minimum Essential Coverage?
2. How will the Health Insurance Tax Penalties be determined and paid?
3. Who are the individuals exempt from paying the Health Insurance Penalty for not being insured?
4. How does an individual file for an exemption?

Each of these topics will be covered in detail in future articles.