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No health insurance? Prepare to pay the penalty

March 10, 2014: 6:00 AM ET

Time is running out to sign up for individual health insurance. And if you don't have some type of coverage this year, be prepared to pay a penalty.

Obamacare requires most Americans to get insurance through an employer, the government or directly from an insurer in 2014. If they don't, they have to fork over a fee to the Internal Revenue Service at tax time.

Uninsured adults will either pay a flat fee for themselves and their children or pay a share of their income. For 2014, it's $95 or 1% of income, per adult, whichever is greater. The penalties go up in later years.

Most low-income residents will only have to shell out $95, but the costs can add up for others. An individual could be socked with a $3,600 charge, and a couple with two children could owe between $285 and $11,000.

How much will you have to pay? The Tax Policy Center has created a calculator to help you tally the penalty.

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About This Author
Tami Luhby
Tami Luhby
Senior writer, CNNMoney

Tami Luhby is a senior writer at CNNMoney and covers income inequality, state fiscal problems, unemployment, housing policy and other economic issues. Luhby previously covered personal finance for Newsday and banking for Crain's New York Business.

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