Another Chance for Taxpayers to Avoid Penalties, Enroll in Health Care

KANSAS CITY, MO--(Marketwired - March 16, 2015) - H&R Block (NYSE: HRB), the world's largest consumer tax services provider, advises taxpayers without health insurance that they may have one more chance to enroll in health insurance and avoid growing tax penalties for 2015. Taxpayers who paid a penalty for being without insurance in 2014 and did not know they faced a penalty until after open enrollment ended on February 15, 2015 may qualify for a special enrollment period March 15 through April 30, 2015.

If they qualify for special enrollment based on the federal or state Marketplace's standards, taxpayers may use H&R Block's nationwide health insurance enrollment services through its partnership with GoHealth. H&R Block's enrollment services, free of charge, help consumers understand their options, apply for the Advance Premium Tax Credit and select and enroll in health insurance coverage. Consumers can call a Licensed Health Care Advisor or visit a website to find plans and enroll.

"The special enrollment period will give qualifying taxpayers a chance to enroll in health insurance and avoid steeper penalties next tax season," said Mark Ciaramitaro, vice president of health care and tax services at H&R Block. "Considering the average penalty paid so far this season is $172 and that penalties will double next year, this is an important opportunity for taxpayers and one we can help them navigate."

Penalties increase for 2015

Penalties will increase from 1 percent to 2 percent of household income above the filing threshold or from $95 to $325 per person, whichever is greater. H&R Block has previously reported that the average penalty is $172, among other Affordable Care Act trends.

For example, a family of four earning $60,000 annually would face a penalty next tax season of almost $1,000 for not having coverage in 2015. For 2014, the penalty for the same family would have only been about $400.

Qualifications for special enrollment period

Taxpayers have until April 30 to enroll in health insurance on the federal Marketplace if they:

• Paid a penalty for being without insurance in 2014;
• Did not know about the penalty and its implications until after open enrollment ended February 15;
• First became aware that they owed a fee in connection with the tax filing process;
• Are not enrolled in health insurance coverage for 2015; and
• Live in a state that uses the federal Marketplace.

Taxpayers who live in a state that has its own Marketplace should check with their state-based Marketplace on any special enrollment periods it may offer.