Individual Mandate

The Affordable Care Act or ACA requires that everyone have qualified coverage, either through their employer, through an individual policy or they many pay a tax penalty.

In 2014, the penalty for individuals (for each family member) will be $95 for adults ($47.50 for a child) or 1% of household income, whichever is greater.

In 2015, penalty rises to $325 per adult and $162.50 per child (up to $975 for a family) or 2% of family income, whichever is greater.

In 2016 it jumps to the greater of $695 for adults ($347.50 for a child) or 2.5% of income.

Currently, the maximum family penalty in 2016 is the greater of 2.5% of income or three times the per-adult penalty ($2,085).