How to avoid a tax penalty!

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SaveMoney_INF26340

New Due Dates for Filing Forms 1095-B, 1094-B, 1095-C and 1094-C — 29-DEC-2015

The due dates for the 2015 information reporting requirements under I.R.C. §§ 6055 and 6056, have been extended.
*The due date for furnishing the 2015 Form 1095-B, Health Coverage, was changed from January 31, 2016, to March 31, 2016; and
*The due date for filing with the Service the 2015 Form 1094-B, Transmittal of Health Coverage Information Returns, and the 2015 Form 1095-B, Health Coverage, was changed from February 29, 2016, to May 31, 2016. If filing electronically, the due date was changed from March 31, 2016, to June 30, 2016.
*The due date for furnishing the 2015 Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, was changed from January 31, 2016, to March 31, 2016; and
*The due date for filing with the Service the 2015 Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, and the 2015 Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, was changed from February 29, 2016, to May 31, 2016. If filing electronically, the due date was changed from March 31, 2016, to June 30, 2016.
As a result of these extensions, individuals might not receive a Form 1095-B or Form 1095-C by the time they file their 2015 tax returns. For further guidance, please see Notice 2016-04.

 

  For 2014, the penalty was set at 1 percent of income or $95 per uninsured adult and $47.50 per uninsured child under 18 (whichever is higher). Penalties for 2015 rise to 2 percent of income or $325 per uninsured adult, and in 2016 the rates climb to 2.5 percent of income or $695 per uninsured adult.

 

After 2016, annual rates are adjusted for inflation. If you are uninsured for only part of the year, the penalty is prorated to cover only your uninsured months. You’re not assessed a penalty for a gap in coverage less than three months long. This is called a “short gap.” However, you are only allowed one short gap per year.

 

https://turbotax.intuit.com/tax-tools/tax-tips/Health-Care/Understand-and-Avoid-Health-Care-Reform-Tax-Penalties/INF26340.html

https://www.irs.gov/uac/Recent-Development-2015-12-29-2015-Forms-1095B-1094B-1095C-and-1094C

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