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A health reform change tops the list: Individuals without insurance owe a tax. Although the Obama administration delayed to 2015 the requirement that employers with 50 or more full-time workers provide employees with affordable health coverage or pay a stiff fine, the 2014 starting date for the individual mandate wasn’t deferred.
Folks must have qualifying coverage for themselves and their dependents to avoid tax. This includes, for example, health coverage provided by their employer that meets minimum federal requirements, coverage purchased through an exchange and federal coverage such as Medicare, Medicaid, Tricare, and veteran’s coverage.
Individuals for whom coverage is too expensive are exempt from the tax. Employees whose share of premiums exceeds 8% of the household’s AGI won’t be hit. Ditto for people ineligible for employer coverage if the cost of a basic bronze-level plan in an exchange, less any tax credit for buying insurance, exceeds 8% of household AGI. Also exempt: Filer without coverage for periods of less than three months. And people who can show that hardship forced them to go without coverage, including Folks whose insurance was canceled and who can’t buy an affordable policy.