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Short Story:

I was unemployed from jan - mar 2016.  I got a new job and was never told nor offered health insurance, I assumed it wasn't an option or i wasn't eligible.

Fast forward. This year I am in the same boat, so I over hear a co-worker talking about insurance....come to find out.  We have 100% company paid.  So all of 2016, I could have had 100% paid insurance.

To add insult to injury, I now have to pay the penalty $695.   Do I have any options other than to pay the penalty?  I realize some of this is on my shoulders...

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might want to notice the part I highlighed

forbin4040 (Jan. 25, 2017 @ 5:01p) |

Oh, I'm not disagreeing with you that it's a giant cluster fu**. But I didn't want to start a political debate, just tr... (more)

martint (Jan. 25, 2017 @ 6:23p) |

It doesn't matter -- the ACA is still a LAW, including the penalty. An EO cannot overturn a law, only give them latitud... (more)

RedWolfe01 (Jan. 26, 2017 @ 6:59a) |

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i... can't.. even!?

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Facepalm (23.08kB)
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</end thread>

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Phenomix said:   Short Story:

I was unemployed from jan - mar 2015.  I got a new job and was never told nor offered health insurance, I assumed it wasn't an option or i wasn't eligible.

Fast forward. This year I am in the same boat, so I over hear a co-worker talking about insurance....come to find out.  We have 100% company paid.  So all of 2015, I could have had 100% paid insurance.

To add insult to injury, I now have to pay the penalty $695.   Do I have any options other than to pay the penalty?  I realize some of this is on my shoulders...

  Either your HR is extremely inept or you simply didnt pay attention to emails/documents sent by HR.

In any case, are we off by an year? You didnt get coverage in 2015 (that was presumably offered) What happened in 2016? It is now Jan 2017. Did you not get anything from HR about enrollment for 2016; assuming they work on a calendar year, these notices usually go out in Oct/Nov. Open enrollment deadlines are usualy in November/early december.

Did you not get any notice end of 2016 about open enrollment? In most cases, you may be out of open enrollment deadline for 2017. Absent special circumstances, you will have to wait for next yea'rs open enrollment period.

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O yeah, My Dates are off.  2016 to 2017.  So the $695 is a stupid Tax. DOH!

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Phenomix said:   O yeah, My Dates are off.  2016 to 2017.  So the $695 is a stupid Tax. DOH!
  Did you enroll for 2017? What was the open enrollment period?

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Since you were unemployed for part of last year, you could apply for a hardship exemption. Might save you the penalty.

ETA: Turns out there's no specific exemption for unemployment, but it's worth a shot anyway.

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Such a dumb situation. 

Yeah I am enrolled now, I am good for 2017.  2016 was the year I was uncovered.

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Call it a $695 - I didn't ask anyone and my HR sucks fee

Or call it a $695 - Thank God I didn't really need medical help and owe thousands fee.

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Try writing "Executive Order 1/20/2017" on your tax return and refusing to pay the tax?

https://www.whitehouse.gov/the-press-office/2017/01/2/executive-order-minimizing-economic-burden-patient-protection-and

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martint said:   Try writing "Executive Order 1/20/2017" on your tax return and refusing to pay the tax?

 

  anyone here have the balls to just write "EO 1/20" on their 1040 and mail that in?

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Look on the brighter side, you may have saved on paying the insurance premiums in 2016 assuming you/family didn't need any medical care during the year so that should be more than enough to cover the penalty.    Benefits are something I look at the very first thing whenever I consider a new employer.

Couple of years ago, my son enrolled at a college which requires medical insurance, he told the school that he had no insurance when in fact he was covered by my family coverage (he never had to worry about insurance/co-pays etc as mom always dealt with the doctors office so he had zero clue about this insurance stuff). He was charged $900 for a year for the insurance. I found out about two months later and tried to cancel it but they said that the won't refund any premiums as the premium is paid for the entire year.  Expensive lesson.

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I mean I knocked down a whoppping 27k last year (bad year) and this penalty...jesus

I am taking advantage of the savers credit   https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit 

So if I dont pay that is considered a tax liability they could pursue?

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U can't fix stupid.

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Not providing advice or suggesting anything, just general questions:

Is the IRS actually receiving reports from each employer that state whether you were covered by insurance?

Do you have to do anything to confirm you had coverage besides check the box on line 61 and move on?

What's the chances of an audit on a return with $27,000 in income?

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zonacat said:   Not providing advice or suggesting anything, just general questions:

Is the IRS actually receiving reports from each employer that state whether you were covered by insurance?

Do you have to do anything to confirm you had coverage besides check the box on line 61 and move on?

What's the chances of an audit on a return with $27,000 in income?

Yes, just like your W2, the IRS also gets a copy of the 1095-A form which proves that you were covered.  You need to be able to provide a copy of 1095-A if they ask you for a proof.  It's not the income the triggers it, in a case like this the system will flag it to show that there is no report of coverage from the employer and then it will check to see if you paid the penalty or not.  That won't necessarily trigger an audit, they'll just ask you for a proof of coverage and if you don't have a such a proof then they'll ask you to pay the penalty and may be some fine on top of that for not paying it on time.

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rufflesinc said:   
martint said:   Try writing "Executive Order 1/20/2017" on your tax return and refusing to pay the tax?

 

  anyone here have the balls to just write "EO 1/20" on their 1040 and mail that in?

  
Well, I assume TurboTax and the other folks are working on the software updates as we speak.  Quality tax software takes a few days to release. 

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Wouldn't it be funny of the 1/20 Exec order really was for the 80/20 rule instead?
That's a mandated fine that would incur a hardship on a business.

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forbin4040 said:   Wouldn't it be funny of the 1/20 Exec order really was for the 80/20 rule instead?
That's a mandated fine that would incur a hardship on a business.

 "Sec. 2. To the maximum extent permitted by law, the Secretary of Health and Human Services (Secretary) and the heads of all other executive departments and agencies (agencies) with authorities and responsibilities under the Act shall exercise all authority and discretion available to them to waive, defer, grant exemptions from, or delay the implementation of any provision or requirement of the Act that would impose a fiscal burden on any State or a cost, fee, tax, penalty, or regulatory burden on individuals, families, healthcare providers, health insurers, patients, recipients of healthcare services, purchasers of health insurance, or makers of medical devices, products, or medications."

Seems like waiving ACA-realated taxes and fees on individuals is a directive of the EO.  But IANAL. 

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martint said:   
forbin4040 said:   Wouldn't it be funny of the 1/20 Exec order really was for the 80/20 rule instead?
That's a mandated fine that would incur a hardship on a business.

 "Sec. 2. To the maximum extent permitted by law, the Secretary of Health and Human Services (Secretary) and the heads of all other executive departments and agencies (agencies) with authorities and responsibilities under the Act shall exercise all authority and discretion available to them to waive, defer, grant exemptions from, or delay the implementation of any provision or requirement of the Act that would impose a fiscal burden on any State or a cost, fee, tax, penalty, or regulatory burden on individuals, families, healthcare providers, health insurers, patients, recipients of healthcare services, purchasers of health insurance, or makers of medical devices, products, or medications."

Seems like waiving ACA-realated taxes and fees on individuals is a directive of the EO.  But IANAL. 

  might want to notice the part I highlighed

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Oh, I'm not disagreeing with you that it's a giant cluster fu**. But I didn't want to start a political debate, just trying to help the OP. If I were a betting man, I'd guess he won't be required to pay a penalty for 2016.

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It doesn't matter -- the ACA is still a LAW, including the penalty. An EO cannot overturn a law, only give them latitude on any exceptions allowed under law that are not clearly defined. Where the law is clear you get nothing.

That is why the EO is worthless. It sounded good to the people that voted for Trump based on his ACA promises though.

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