The Patient Protection and Affordable Care Act, better known as Obamacare, has been controversial ever since it was first proposed. One of the most contentious issues over Obamacare is the individual mandate, which requires Americans to have qualifying health insurance coverage to avoid owing a penalty. Yet some have asserted that taxpayers don't have to worry about Obamacare penalties because of limitations in the law that created it, and even the IRS has noted that it doesn't have as much recourse to collect unpaid penalty amounts as it does for traditional income tax collections. Let's take a closer look at the Obamacare penalty provisions with an eye toward figuring out the truth about whether you have to pay a penalty or not. When You Might Have to Pay Obamacare Penalties Penalties under Obamacare, which the law refers to as "shared responsibility payments," kick in if you don't have the required minimum essential coverage and don't qualify for an exemption. Exemptions are available in 2015 for those for whom the cost of health insurance would be more than 8.05 percent of their household income, as well as those who are homeless, have had their homes foreclosed upon, have filed for bankruptcy, have substantial unpaid medical bills, or have suffered the death of a close family member. A few other exemptions apply, including victims of domestic violence, those who've gone through a natural disaster, and those who are caring for eligible family members and have had to pay higher costs as a result. If you don't have coverage and an exemption doesn't apply, then the base penalty for 2015 is $325 an adult and $162.50 a child up to a family maximum of $975. However, if your income is high enough so that 2 percent of the amount of income above the tax filing threshold is greater than the base penalty, then you'll owe the higher amount.
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