There is a common misperception that households lacking health insurance by March 31 will be liable for a tax penalty of only $95 per person, according to the Wall Street Journal, Forbes and other media outlets.
In reality, the penalty will be much higher for the vast majority of those affected by it. Only low-income households will pay the $95 fee. Individuals making more than $19,500 will pay 1 percent of their adjusted gross income above their personal exemption and standard deduction. Based on exemptions and deductions from 2013, the penalty would be $200 for a person earning $30,000.
It gets even more complicated for families. The Forbes article spells out how penalties for married couples and those with children will work. According to the Wall Street Journal, an uninsured family with two kids and a gross adjusted income of $100,000 can expect a penalty of around $800.
Lingering confusion over this and other Affordable Care Act details shows that the advice of professional advisors is as important now as it ever was. For more information, see NAIFA's ACA resource page.