ACA Penalty Details

The Affordable Care Act, also known as Obamacare, forces working Americans to either buy government approved health insurance by March 31st of 2014 or pay a fine. This illegal tax is officially called the Individual Shared Responsibility Payment. Isn’t that sweet? We all have an extra responsibility now thanks to Mr. Obama.

As a result this nightmare, filing your 2014 taxes will include an added layer of complexity as the penalty is administered through the federal tax system. You can calculate your Obamacare fee to see exactly what you are facing. You should know, it is only going to get worse as the tax is progressive, just like his politics, meaning year after year the ACA fine increases.

People are understandably outraged now that Obamacare, the President’s signature achievement, has finally become a reality. Many who were previously in favor of the law understandably feel betrayed since the American people were so obviously lied to about so many key aspects of it. There is now widespread interest in opting out in order to avoid the ACA fine and this entire disastrous socialist experiment.

New Obligation of the American Sheeple

The chart below shows the phased-in ACA fine which, as you can see, becomes increasingly burdensome with each passing year. For 2014, the key date is March 31st which is your deadline for buying government approved insurance. There are exemptions but generally if you have a job and you’re still uninsured on April 1st, then the joke is on you!

ACA Fines 2014 & Beyond
In the first year, as an individual, you are on the hook for 1% of your income or $95 whichever is greater. If you have uninsured children you will be fined an additional $47.50 per child. The maximum 2014 fine for a family is $285 or 1 percent of total taxable income, again whichever is more, according to your Form 1040.

The fine increases in 2015 and again the following year. Starting in 2017 the fine will begin increasing based on a cost of living index much like Social Security benefits are adjusted to reflect inflation.

The IRS has been tasked to enforce this ACA fine as a key provision of the controversial individual mandate. However, what people don’t realize is that even the IRS does not like this new tax.

The ACA fine is pretty much unenforceable and will just increase hatred of the Internal Revenue Service. While they will try to collect the new Obamacare fine from unsuspecting citizens (slaves) they actually have very little enforcement powers or effective tools to collect.

Congress definitely set very weak collection abilities on ACA offenders but they depend on you not knowing that. Many will get threatening IRS letters and pay the fine out of fear. After learning more about the ACA fine you’ll probably just throw those letters in the trash.

The truth is they cannot enforce any type of lien or seizure against you for not paying the Obamacare penalty. Garnishment of your wages are also not allowed. All the normal tools for enforcement are unavailable to the IRS concerning collection of the ACA fine. This goes for criminal and civil penalties which are usually tools readily available to the IRS.

Here is the actual wording of the law in regards to the penalty for not obtaining government mandated health insurance:

(A) WAIVER OF CRIMINAL PENALTIES- In the case of any failure by a taxpayer to timely pay any penalty imposed by this section, such taxpayer shall not be subject to any criminal prosecution or penalty with respect to such failure.
(B) LIMITATIONS ON LIENS AND LEVIES- The Secretary shall not—
(i) file notice of lien with respect to any property of a taxpayer by reason of any failure to pay the penalty imposed by this section, or
(ii) levy on any such property with respect to such failure.

Here is a screenshot of the “Individual Shared Responsibility Provision” as explained by the IRS:

IRS Summary of Obamacare Penalty


The Supreme Court, in a very controversial ruling, admitted the fine is actually a tax but it is not officially classified as a “tax” at the IRS, leaving them pretty much powerless. Congress knew this whole Obamacare mandate to be insane when they dumped this responsibility on the IRS.

The good news is this all works to your advantage. Play your cards right and avoid the ACA fine while, at the same time, sending a message to the federal government that the American people overwhelmingly reject the UNaffordable careLESS Act. Read about the solution in more detail.

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