This year's minimum tax of the higher figure between either $95 per adult or 1% of ones income, becomes $325 or 2% next year, becoming $695 or 2.5% the year after, with future income escalations going forward after that. In other words if you don't buy their health insurance they will make you buy it anyway.
Most are unaware that the very stylish HealthCare.gov website (the one that only cost the United States taxpayer an estimated 1.7 billion to set-up) has published a list of 14 Hardship Exemptions.
Two of the 14 Hardship Exemptions require no documentation at all, including being beaten by your wife.
Additionally I've found several other valuable ways to avoid paying the Obamacare Tax.
Here to help are “17 Ways to Avoid the Obamacare Tax Penalty Including Being Beaten by Your Wife.”
#1. Claim you were homeless. Required documentation: None
Official text reads: "You were homeless. Required documentation: None."
Translation: You may apply for an exemption just by stating “I am exempt because I am homeless.” No documentation required. Since the full list of exemptions also allows for a 2 month gap in coverage even 1 day per month of so-called homelessness for 10 months out of the year may by sufficient.
#2. Stop paying your rent or mortgage. Required documentation: Yes
Official text reads: "You were evicted in the past 6 months or were facing eviction or foreclosure. Required documentation: Eviction or foreclosure notice. The date of the notice must be within the last 6 months."
Translation: You can stop paying your rent or mortgage until you receive an eviction or foreclosure notice, then use this to claim the exemption. You don't actually have to be foreclosed or evicted; simply a notice of such is sufficient.
#3. Stop paying your utility bill. Required documentation: Yes
Official text reads: "You received a shut-off notice from a utility company. Required documentation: Shut-off notice from a utility company which states service has or will be shut-off."
Translation: You can stop paying your utility bill until you receive a written shut-off notice warning and then use that to apply for the exemption.
#4. Get beaten by your wife. Required documentation: None
Official text reads: "You recently experienced domestic violence. Required documentation: None."
Translation: Get attacked by your wife. You may then apply for the exemption by simply stating “I am exempt because my wife beat me.” No documentation required.
If the 10 others in this List of Hardship Exemptions don't happen to apply to you then you can always be creative and use #14, You experienced a hardship that kept you from getting health insurance that’s NOT listed in categories #1-13. And Translation: You can get creative. What's fascinating is that last year's text for this was only “please submit documentation if possible.”
#15. Live Abroad (for at least 330 days per year).
What better way to tell the Socialists in the US Government to go to hell than to live elsewhere? For years people have searched for deals on flights and accommodation, taken air courier jobs, and so on to save on travel. Now the United States Government is basically paying you to live abroad.
#16. Go To Jail.
Get incarcerated for 1 day every month to be exempt from the tax. Since the list of exemptions also allows for a 2 month gap in coverage, that mean you would only have to be incarcerated 1 day for each of 10 months.
#17. Stop Working.
Perhaps you decide that the current administration has made working into a moral hazard?
Simply make less than $10,150.00 per year and you are now exempt.
If the cost of the basic policy exceeds 8% of your income you are also exempt.
Bonus #18. You're exempt if you are an illegal alien.
But don't worry you can still visit your local emergency room at the hospital and they will be forced to give you treatment; payment optional.
And don't worry this gives big business (those with over 50 employees) a future chance to decide to hire from the estimated 5 million amnestied illegal aliens and save paying the $3,000.00 annual penalty for not providing health insurance.
If you're still considering whether it's worth applying for an exemption take into account that the Congressional Budget Office estimates that 4 million will pay penalties while 26 million will not.
Intuit (which is TurboTax) has said it estimates that 20 million or more of the 40 million people who lacked health insurance in 2014 may be exempt from the Obamacare tax penalty.
Amazingly Intuit also estimates that less that 5 percent of the exemption eligible people have applied so far, implying a lack of education on how the process works.
And Finally (don't you wish you had read this first?), on page 131 of the law, it's apparently written that no one ever really has to pay the fine in the individual mandate anyway! The individual mandate is the only provision in the tax code that was written intentionally to be basically unenforceable. The IRS cannot enforce the Individual Shared Responsibility Provision with jail time, liens, or any other of typical methods of collection. The only way for the IRS to collect the fee for not having health insurance, if you choose not to pay it, is for them to withhold the money you would get back (Federal Income Tax Refund) from the IRS after you file your income tax return.
Hardship Exemption Application
Happy Tax Day,
Happy Tax Day,