The Affordable Care Act (Obamacare): If You Do Not Have Health insurance (Uninsu

Health Reform 2010 requires citizens and legal residents to have qualifying health coverage starting in 2014.

People who do not have coverage will pay a tax penalty. The penalty is the greater of $695 per year up to a maximum of three times that amount ($2,085) per family or 2.5% of household income.

The penalty will be phased in according to the following schedule:

Year Amount of Penalty

2014 $95 or 1% of taxable income

2015 $325 or 2% of taxable income

2016 $695 or 2.5% of taxable income

Beginning after 2016, the penalty will be increased annually by the cost-of-living adjustment.

Exemptions will be granted for:

• Financial hardship
• Religious objections
• American Indians
• People without coverage for less than three months
• Undocumented immigrants
• People in jail
• People for whom the lowest cost plan option exceeds 8% of an individual's income
• People with incomes below the tax filing threshold (in 2009 the threshold for taxpayers under age 65 was $9,350 for singles and $18,700 for couples)

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