Do I have to sign up for Obamacare?
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| Attorney Tom Bushnell |
Generally under 26 USC § 5000A(a) you will have to either purchase health care coverage beginning in January of 2014 or face a penalty (Chief Justice John Roberts has called this a "tax."). However there are ways to get around this penalty.
Here are a few options for you. I have chosen option number 6 below.
1. If you are a dependent (as defined in section 152) of another taxpayer. Of course, if that other taxpayer doesn't purchase health care insurance for you they will face the penalty. (See 26 USC § 5000A(b)(3)(A).
2. If you are in jail. Hey, at least you get three squares and a place to sleep. (See 26 USC § 5000A(d)(4).
3. Be in the country illegally. (See 26 USC § 5000A(d)(3).
4. If you "cannot afford coverage" under 26 USC § 5000A(e)(1)(A)
(A) In general: Any applicable individual for any month if the applicable individual’s required contribution (determined on an annual basis) for coverage for the month exceeds 8 percent of such individual’s household income for the taxable year described in section 1412(b)(1)(B) of the Patient Protection and Affordable Care Act. For purposes of applying this subparagraph, the taxpayer’s household income shall be increased by any exclusion from gross income for any portion of the required contribution made through a salary reduction arrangement.
You got that? Good, neither did I.
5. Join an Amish or Mennonite Church and then opt out of Social Security (See 26 USC § 5000A(d)(2)(A).
6. Become a member of a Health care sharing ministry (See 26 USC § 5000A(d)(2)(B).
(B) Health care sharing ministry:
(i) In general Such term shall not include any individual for any month if such individual is a member of a health care sharing ministry for the month.
(ii) Health care sharing ministry The term “health care sharing ministry” means an organization—
(I) which is described in section 501 (c)(3) and is exempt from taxation under section 501 (a),
(II) members of which share a common set of ethical or religious beliefs and share medical expenses among members in accordance with those beliefs and without regard to the State in which a member resides or is employed,
(III) members of which retain membership even after they develop a medical condition,
(IV) which (or a predecessor of which) has been in existence at all times since December 31, 1999, and medical expenses of its members have been shared continuously and without interruption since at least December 31, 1999, and
(V) which conducts an annual audit which is performed by an independent certified public accounting firm in accordance with generally accepted accounting principles and which is made available to the public upon request.
(This information has been provided by Thomas A. Bushnell, Attorney at Law. It is provided for informational purposes only and not meant to be legal advice. Further no Attorney-Client relationship is established through providing this information. Thomas A. Bushnell is a General Practice Attorney in Bonners Ferry, Idaho. If you need legal assistance in Boundary County, Idaho, you may contact Tom at Thomasabushnell@gmail.com.)