Individual Shared Responsibility Payment Amounts for 2014 and 2015 Tax Years

The amount of the individual shared responsibility payment increases between 2014 and 2015.
  • 2014: The annual individual shared responsibility payment is the greater of
    • 1% of the taxpayer’s household income that is above the tax return filing threshold for the taxpayer’s filing status, or
    • The taxpayer’s flat dollar amount, which is $95 per adult and $47.50 per child, limited to a family maximum of $285.
  • However the total payment amount is capped at the cost of the national average premium for a Bronze level health plan available through the Marketplaces in 2014.
  • 2015: The annual individual responsibility payment is the greater of
    • 2% of the taxpayer’s household income that is above the tax return filing threshold for the taxpayer’s filing status, or
    • The taxpayer’s flat dollar amount, which is $325 per adult and $162.50 per child, limited to a family maximum of $975.
  • However the total payment amount is capped at the cost of the national average premium for a Bronze level health plan available through the Marketplaces in 2015.

The calculations above represent the amount of the payment for not having health insurance coverage for the entire year. Individuals will owe 1/12th of the annual payment for each month they (or their dependents) do not have coverage and are not exempt. Individuals without coverage for less than three consecutive months during the year may qualify for the short coverage gap exemption and will not have to make a payment for those months. The short coverage gap exemption only applies to the first coverage gap during a year.

The same method of calculation is used in 2016 and later years. In 2016, the payment is the greater of 2.5% of income over the filing threshold, or $695 per person ($347.50 per child under 18). After 2016, the payment is adjusted for inflation.

For more information, please visit the Internal Revenue Service (IRS) website, or contact your Total Benefit Solutions, Inc account manager at (215)355-2121.