It’s tax season, which means Americans are busy filing and receiving tax returns. This is also when Americans who did not have health insurance in 2014 have to pay penalties. 2014 was the first year that the Affordable Care Act, or Obama Care, made it illegal to go without health care coverage. The uninsured now have to pay one of these two fees: 1% of household income, or $95 per person in a household. These fees will come out of your tax refund or added to your taxes owed on your 2014 tax return.

This penalty encouraged many uninsured to buy coverage, but some Americans still are without it. As of December 2014, 14% of Americans did not have health care coverage. That means 32 million people were uninsured and will have to pay the 2014 penalty.

Still not convinced you should have health insurance? Perhaps the fact that the penalties will only continue to increase will encourage you. If still without health care coverage in 2015, you pay the higher of these two fees: 2% of your household income, or $325 per person ($162.20 per child under 18) for the year.

Some Americans refuse to buy health care coverage because they feel they will save money by just paying the fine. If you feel this way, we encourage you to calculate your approximate health insurance penalty through online tax calculators.

With each year this penalty will increase. We strongly encourage you to buy health care coverage because of this penalty but also to protect yourself in the future. The last day to buy health care coverage for 2015 coverage is February 15th. You cannot buy coverage after this day unless a life changing event occurs. If you’re interested in buying health care, and need an advocate, our agency would be happy to help.