THOMAS & FARR INSURANCE AGENCY, INC.

THOMAS & FARR ISURANCE AGENCY, INC.

Cost of Individual Mandate Fine

The Cost of the fine for not complying with the law that requires everyone to buy health insurance is more than people think!

Most people are looking at the penalty for not complying with the law and buying health insurance as not a  big deal. After all, he noted, the penalty is just $95. How much could that possibly matter? - NOT ALWAYS THE CASE!

This is a common bit of confusion. The individual mandate's penalty is not just $95 in year one. It's $95 or 1 percent of your taxable income, whichever is greater. So if you make $80,000 in taxable income, the penalty is $800.  And the fine grows each year. In year two, it's $325 or 2 percent of your taxable income. In year three, it's $695 or 2.5 percent of taxable income. After that, it holds steady.

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