8 Million Americans Paid $1.7 Billion For Not Having Obamacare
Nearly 8.1 million Americans paid $1.7 billion in penalties in 2014 for not having health insurance — more than the IRS initially predicted.
The individual mandate, or what the IRS calls “individual shared responsibility payments,” requires everyone either have insurance or pay a fine, and was one of the last pieces of Obamacare to go into effect. IRS set the fine at $96, or 1 percent of the reported adjusted gross income, whichever is greater, in 2014.
The penalty will increase to a flat payment of $695, or 2.5 percent of gross income in 2016, the Congressional Budget Office said in 2014. After this year, the penalty will be tied to inflation.
“Beginning in 2014, the Affordable Care Act required that individuals must have had health care coverage, qualified for a health coverage exemption, or made a shared responsibility payment with a tax return,” the IRS said in its report of 2014 returns. “A health care individual responsibility payment was made on 8.1 million returns for $1.7 billion, an average of $210 per tax return paying this penalty.”