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2015 Individual Mandate Penalties

Posted on January 23rd, 2015

The IRS has released the maximum penalties that are payable by individuals who are without minimum essential coverage in 2015 and who do not qualify for an exemption from the Individual Mandate.

The maximum penalties for this year are the greater of:

  • $325 per uninsured adult or $162.50 per uninsured child under age 18. The maximum penalty using this method is capped at $975.

  • 2% of yearly household income. Only income in excess of the tax filing threshold is used in the penalty calculation.

    • Using this method, the maximum penalty is capped at the national average premium for a bronze plan. The IRS has indicated the national average premium for a bronze plan is $207 per month (up from $204 per month last year) per person. The penalty would apply to a maximum of 5 family members under this method, which means the maximum annualized penalty based on household size is as follows:

      • Single: $2,484

      • Household of Two: $4,968

      • Household of Three: $7,452

      • Household of Four: $9,936

      • Household of Five: $12,420

 

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The materials contained within this communication are provided for informational purposes only and do not constitute legal or tax advice.
 

 

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