Question
In: Finance
On January 1, 2016, Brooke Daniels, a young single woman just out of college, started a...
On January 1, 2016, Brooke Daniels, a young single woman just out of college, started a new job. She was eligible for health insurance, but decided not to take insurance offered by her employer. She did not purchase any other health insurance. She did not require any medical procedures during the year and, therefore paid nothing for healthcare costs. Her income for the year was $37,200. Will Brooke have a tax penalty? If so, how much?
Solutions
Expert Solution
Brooke income in year = $37,200
Penalty of not having health insurance is 2.5 percent of annal household income or $695 per person.
Total Penalty = $37,200 × 2.50%
= $930
Tax penalty she has to pay for not having health insurance is $930.
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