Reality Check: Obamacare tax bill - Cincinnati News, Weather, Sports from FOX19 NOW-WXIX

Reality Check: Obamacare tax bill

(FOX19) -

Nineteen days and counting. That's how long uninsured Americans have to take advantage of the ACA open enrollment period and avoid the penalty, which is essentially a tax bill.

Jackson Hewitt, the nation's second largest tax preparation firm, has partnered with ACA Healthcare Exchange GetInsured to guide people through the online insurance marketplace - a process they say takes only five to six minutes.

Brian Haile, Jackson Hewitt's Senior VP for Health Care Policy, says some people get downright apoplectic when they find out how much they actually have to pay if they choose not to buy into Obamacare. 

"So many people walk in and assume they're only going to have to pay 95-dollars if they and their families remain uninsured for this next year whine in fact they're probably going to have to pay 1 percent of their income so when we work that out people are absolutely shocked," says Haile.

Using Haile's example, say a family of five makes $68 thousand a year. However, one family member goes uninsured - the 'one percent' tax penalty is $477. If you are penalized, it will be withheld from your 2014 tax refund. If the payment is not made, the IRS can withhold the amount from any future tax refunds with an accrued interest totaling nearly 3 percent.

Haile strongly advises tax filers not to let it come to that adding, "What you don't want to do is throw money down a rat hole and that's exactly what the penalty is. If you just throw it away you lose the opportunity to get coverage."

 Haile admits that there are some people who might be better off paying the penalty rather than buying coverage. One way to know for sure is to use a tax calculator. TurboTax can walk you through the process online and it's free, but the bottom line is this: Millions of people who remain uninsured after March 31 are going to get a tax bill, one that is very likely to be more than they bargained for.

 Sources

http://www.jacksonhewitt.com/Resource-Center/Affordable-Care-Act/?wpisrc=nl_wonk_b

http://blog.turbotax.intuit.com/2013/09/04/affordable-care-act-101-what-is-a-health-care-reform-tax-penalty/

https://www.healthcare.gov/what-if-someone-doesnt-have-health-coverage-in-2014/

Copyright 2014 WXIX. All rights reserved.

  • FOX19 HeadlinesMore>>

  • Online post suggests rampage suspect may have resented women

    Online post suggests rampage suspect may have resented women

    Tuesday, April 24 2018 12:25 AM EDT2018-04-24 04:25:49 GMT
    Wednesday, April 25 2018 12:08 AM EDT2018-04-25 04:08:42 GMT
    (Aaron Vincent Elkaim/The Canadian Press via AP). Officials carry a body into a vehicle after a van mounted a sidewalk crashing into pedestrians in Toronto on Monday, April 23, 2018. The rented van jumped onto the crowded sidewalk Monday, killing and i...(Aaron Vincent Elkaim/The Canadian Press via AP). Officials carry a body into a vehicle after a van mounted a sidewalk crashing into pedestrians in Toronto on Monday, April 23, 2018. The rented van jumped onto the crowded sidewalk Monday, killing and i...

    Police in Canada's biggest city are piecing together witness accounts and surveillance video trying to determine why a driver plowed a rented van along a crowded sidewalk, killing 10 people and injuring 15 in what...

    Full Story >

    Police in Canada's biggest city are piecing together witness accounts and surveillance video trying to determine why a driver plowed a rented van along a crowded sidewalk, killing 10 people and injuring 15 in what many said seemed a deliberate attack.

    Full Story >
  • The Latest: Trump urges VA nominee to keep fighting

    The Latest: Trump urges VA nominee to keep fighting

    Tuesday, April 24 2018 9:46 AM EDT2018-04-24 13:46:17 GMT
    Wednesday, April 25 2018 12:08 AM EDT2018-04-25 04:08:06 GMT
    (AP Photo/Alex Brandon). In this April 16, 2018, photo, U.S. Navy Rear Adm. Ronny Jackson, M.D., sits with Sen. Johnny Isakson, R-Ga., chairman of the Veteran's Affairs Committee, before their meeting on Capitol Hilin Washington. Jackson is President D...(AP Photo/Alex Brandon). In this April 16, 2018, photo, U.S. Navy Rear Adm. Ronny Jackson, M.D., sits with Sen. Johnny Isakson, R-Ga., chairman of the Veteran's Affairs Committee, before their meeting on Capitol Hilin Washington. Jackson is President D...

    The White House is standing behind Ronny Jackson, President Donald Trump's choice to be Veterans Affairs secretary amid growing questions about his qualifications.

    Full Story >

    The White House is standing behind Ronny Jackson, President Donald Trump's choice to be Veterans Affairs secretary amid growing questions about his qualifications.

    Full Story >
  • Muslim group: Hate crimes increased 15 percent in 2017

    Muslim group: Hate crimes increased 15 percent in 2017

    Wednesday, April 25 2018 12:02 AM EDT2018-04-25 04:02:13 GMT
    Wednesday, April 25 2018 12:02 AM EDT2018-04-25 04:02:13 GMT
    A mosque was burned in Washington state in January 2017 in a suspected arson. (Source: Bellevue, Wash., Fire Department via AP)A mosque was burned in Washington state in January 2017 in a suspected arson. (Source: Bellevue, Wash., Fire Department via AP)

    Since 2015, incidents of bias have increased 84 percent and hate crimes have risen 66 percent, according to the organization.

    Full Story >

    Since 2015, incidents of bias have increased 84 percent and hate crimes have risen 66 percent, according to the organization.

    Full Story >
Powered by Frankly