Our tax program has extensive worksheets to “help” calculate the “individual shared responsibility payment” (ISRP) penalty. I have studied the worksheet. I think I am fairly intelligent, but the more I study this ACA and its provisions and implications the more confused I become. But it looks like some consideration is given for staggered health coverage amongst the family members. That was a concern of mine.
But I did finally see a fairly simple algorithm for the ISRP. The minimum penalty is $95.00 per adult ($47.50 per child) or 1% of the adjusted modified adjusted gross income limited to a $285.00 maximum penalty.
1 percent of your household income that is above the tax return threshold for your filing status, such as Married Filing Jointly or single, or Your family’s flat dollar amount, which is $95 per adult and $47.50 per child, limited to a maximum of $285.
Certain exceptions apply.
For more confusing information about the Affordable Care Act see this link http://www.irs.gov/Affordable-Care-Act/The-Individual-Shared-Responsibility-Payment-An-Overview
For Tax Help contact Carl Bohn of Mohave Tax Clinic at http://ez-online-tax-filing.com//mohave-tax-clinic.html