2014 A.C.A. penalties on your taxes

TERRE HAUTE, Ind (WTHI) – Tax season has a new element added to it. This year while doing your taxes, you may notice questions about health insurance.

As tax preparers gear up for the effects of the Affordable Care Act, there are some things they want you to know because what you don’t have may cost you.

Right in the thick of tax season, amid the W2s and deductions, is a new question accountants and tax preparers across the country are asking you: Do you have health insurance?

“The insurance part of it, the individuals were supposed to be signed up, originally, by December 31st and that’s been pushed back until March 31st of 2014,” Mike Perkins of Larrison’s Tax Service

That’s the individual mandate that you may have heard about. Get health insurance or else.

“They have to be signed or face a penalty when they file their 2014 tax return,” Perkins said.

That’s why we sat down with Mike Perkins of Larrison’s Tax Service. He and his associates have been reminding people to get signed up for health insurance because while the fines start small.

“If they don’t have insurance the first two people are (fined) $95 and then its $45 an individual for the third individual after that.”

Over the next few years those fines grow exponentially.

“So like 2015, 2016,2017, so on and so forth they’re going to get up to the thousands of dollars in penalties.”

So where should you go from here?

Perkins and his team say you need to get insured as soon as possible. Come next year if you’re not, it could cost you and your family.

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