Penalty for Not Signing Up for Obamacare

If you do not sign up for Obamacare, you will have to pay a penalty fee (or added tax).  The penalty for not signing up for Obamacare for 2014 is 1% of your income (or $95 per adult), whichever is greater.  This fee is currently set to rise each year until 2016 when the fee rises to 2.5% of your income (or $695 per adult).

Pros and Cons of Obamacare

After 2016, the fee will be adjusted for inflation.  Because inflation usually goes up, it is almost user to continue rising.

This fee will be added to your federal tax return that is filed at the end of the year.