In a final regulation issued Wednesday, the Internal Revenue Service (IRS) assumed that under Obamacare the cheapest health insurance plan available in 2016 for a family will cost $20,000 for the year. Under Obamacare, Americans will be required to buy health insurance or pay a penalty to the IRS. The IRS's assumption that the cheapest plan for family will cost $20,000 per year is found in examples the IRS gives to help people understand how to calculate the penalty they will need to pay the government if they do not buy a mandated health plan. The examples point to families of four and families of five, both of which the IRS expects in its assumptions to pay a minimum of $20,000 per year for a bronze plan. âThe annual national average bronze plan premium for a family of 5 (2 adults, 3 children) is $20,000,â the regulation says. Bronze will be the lowest tier health-insurance plan available under Obamacare--after Silver, Gold, and Platinum. Under the law, the penalty for not buying health insurance is supposed to be capped at either the annual average Bronze premium, 2.5 percent of taxable income, or $2,085.00 per family in 2016. In the new final rules published Wednesday, IRS set in law the rules for implementing the penalty Americans must pay if they fail to obey Obamacare's mandate to buy insurance. To help illustrate these rules, the IRS presented examples of different situations families might find themselves in. In the examples, the IRS assumes that families of five who are uninsured would need to pay an average of $20,000 per year to purchase a Bronze plan in 2016. Using the conditions laid out in the regulations, the IRS calculates that a family earning $120,000 per year that did not buy insurance would need to pay a "penalty" (a word the IRS still uses despite the Supreme Court ruling that it is in fact a "tax") of $2,400 in 2016. http://cnsnews.com/news/article/irs-cheapest-obamacare-plan-will-be-20000-family
And do I understand correctly, if your employer furnishes you that kind of insurance you'll be taxed on it as normal income?
I hope that isn't the case. I think our contribution to the insurance is after tax, too. It's going to hurt middle income families if suddenly they have another $2,000 to $5,000 or more of taxes to pay.
Update: I found this in a Forbes article. An annual $2,500 limit on employee payroll contributions to employer-sponsored health flexible spending arrangements (or health FSA's) which allow employees to pay for out-of-pocket medical expenses with pre-tax dollars effective beginning in 2013. And on another site the employer cost of your health insurance will NOT be taxable to you but will be reported on your W-2. Under the Affordable Care Act (ObamaCare), payroll depts. should note that employers are now required to report the cost of health insurance coverage under an employer-sponsored group health plan on Form W-2. Originally legislated to kick in in 2011, the IRS granted transitional relief to all employers for 2011. For the year 2012, only employers with 250 or more employees will be required to report this benefit on employee W-2's. The IRS noted that reporting the cost of health care coverage on the Form W-2 does not mean that the coverage is taxable. The value of the employer's excludable contribution to health coverage continues to be excludable from an employee's income, and it is not taxable.
They now require ,on employees W2, a box that shows actual health insurance costs spent by the employer. Employees are seeing numbers like 10k,15k all not taxable. Why is this being done? Obama will start a campaign showing that the heath care costs should be converted to employee income and all health care should be provided by the Government. This is a very strong populist argument to get people to accept single payer system
At this point I plan to pay the nontax , tax penalty for non-payment. thanks john roberts for an utterly stupid ruling. might want to lay off the mescaline next ruling there shithead.
Well, my plan is to keep on living in the US and pay for fifty million ghetto monster children that will be raised to hate whiteys and vote marxist in perpetuity..