Facts about The Affordable Care Act (Obama-care)

Individual Shared Responsibility Provision – Reporting and Calculating the Payment

The annual payment amount is either a percentage of your household income in excess of the return filing threshold or a flat dollar amount, whichever is greater.  If you have coverage or an exemption for only part of the year, you will prorate your payment for an amount less than the annual payment. The amount you will have to pay may be limited depending on your circumstances.

2014, 2015 and 2016

Annual Payment Amounts

Year 2014

Year 2015

Year 2016

Percentage amount

 1% of income above filing threshold*

2% of income above filing threshold*

2.5% of income above filing threshold*

Flat dollar amount**

$95 per adult

$47.50 per child

Family maximum: $285

$325 per adult

$162.50 per child

Family maximum: $975

$695 per adult

$347.50 per child

Family maximum: $2,085

Your payment amount is capped at the cost of the national average premium for a bronze level health plan available through the Marketplace. For 2015, the annual national average premium for a bronze level health plan available through the Marketplace is $2,484 per year ($207 per month) for an individual and $12,240 per year ($1,020 per month) for a family with five or more members.

* Filing Threshold: The minimum amount of gross income an individual of your age and with your filing status (e.g., single, married filing jointly, head of household) must make to be required to file a tax return.

**After year 2016, the flat dollar amounts are based on the 2016 amounts plus an inflation adjustment..

Calculating your payment requires you to know your household income and your tax return filing threshold.

  • Household income is the modified adjusted gross income of you, your spouse (if filing jointly), and any dependents who are required to file a tax return.  Modified adjusted gross income is the adjusted gross income from the tax return plus any excludible foreign earned income and tax-exempt interest received during the taxable year.
  • Tax return filing threshold is the minimum amount of gross income an individual of your age and with your filing status must make to be required to file a tax return.

2015 Federal Tax Filing Requirement Thresholds

Filing Status Age Must File a Return If Gross Income Exceeds
Single Under 65 $10,300
65 or older $11,850
Head of Household Under 65 $13,250
65 or older $14,800
Married Filing Jointly Under 65 (both spouses) $20,600
65 or older (one spouse) $21,850
65 or older (both spouses) $23,100
Married Filing Separately Any age $4,000
Qualifying Widow(er) with Dependent Children Under 65 $16,600
65 or older $17,850

 

If you are not required to file a federal income tax return for a year because your gross income is below your return filing threshold, you are automatically exempt from the shared responsibility provision for that year and do not need to take any further action to secure an exemption. Therefore, you do not need to file a return solely to report your coverage or to claim a coverage exemption. If your income is below the filing threshold for your filing status and you choose to file a tax return, you will use Part II of Form 8965, Coverage Exemptions for Your Household Claimed on Your Return, to claim a coverage exemption. You should not make a shared responsibility payment if you are exempt from the coverage requirement because you have income below the filing threshold.