“The penalty will be applied to your year-end federal modified adjusted gross income for each month you don’t have health insurance or an exemption.”
Help me to understand this. How can the penalty, which is a set dollar amount, be added to one’s MAGI? Then a person would pay the tax on the penalty, not pay the full penalty.
As I read it the penalty amount is not what you pay but rather the amount added as income to offset your earnings thus raising your taxes. That rise in taxes is the true penalty amount. After all that means poor people never pay the same as the middle class. Thus, just another government scam to attack the middle class.