posted on Feb, 1 2013 @ 01:28 PM
reply to post by snarky412
Section 5000A(e)(1)(A) provides that an individual is exempt for a month for which the individual does not have access to affordable minimum essential
coverage. For this purpose, an individual does not have access to affordable coverage for a month if the individual's required contribution
(determined on an annual basis) for coverage for the month exceeds 8 percent of the taxpayer's household income for the taxable year.
Page 23, from here: www.irs.gov...
In other words, if the required contribution (love the choice of words there--we contribute, we don't "pay" lol) exceeds 8% of your household income,
then you are exempt. In other words, if your household income is only $24,000, then 8% of your household income would be $1920. 1920 divided by 12
months is $160 a month. I believe that what they are saying is that if it exceeds that $160 for a month, you are exempt from the contribution. So
it's definitely scaled for to prevent undue hardship based on household income.
Caveat: Only on my second cup of coffee and breezed through the IRS document to find this. Hate legalese so my interpretation may be wrong but I was
trained to read IRS docs for this kind of info so probably am not.
edit on 1/2/13 by WhiteAlice because: feeling the need to be
responsible with info