All US citizens must have health insurance that provides minimum coverage or pay a penalty on their tax returns. The IRS released the fines that will be imposed on people who forgo health insurance coverage.
The maximum fine for 2014 will be $12,240 for a five-person family.
For individuals who earn more than $19,650, the fine will be 1% of annual income. People earning between $10,150 and $19,650 will incur a penalty of $95. People earning less than $10,150 will not have to pay a penalty.
The 2014 Individual Income Tax Return will have a line item to report coverage. Any penalty amount due will be paid with the 2014 income tax filing.
