Health Care Penalties
Updated: Friday, August 2 2013, 10:14 PM EDT
How would you like paying for health coverage for someone who chooses not to pay themselves. Under the Affordable Care Act, the IRS would collect a fee from people who do not buy health insurance but the health care law limits the ways the IRS can get the cash.
Matt Markham from our sister station WRGB in Albany, New York looks at how the government will try to force you to pay, and the problems it may cause.
The chance of health is a high stakes game with the IRS at the other end of the table.
"If you don't pay your taxes, they're going to come after you, right?" "They are going to come after you. I think the difference between this and something else is other taxes that you might owe, is to seize your assets. They can sue you. But, they can only sue you for up to two times what you can owe," said Financial expert Dennis Fagan.
That cost would be phased in on your tax returns, at $695 in 2016. The IRS says it will start by deducting what you owe from your refund.
"If you're young, maybe you're not earning that much money. Maybe you're not going to get a refund. That's where the rubber will hit the road as far as this whole discussion goes," said Fagan.
For some people, the penalty would be less than the cost of insurance.