Calculation of the Shared Responsibility Payment

If the taxpayer must make an individual shared responsibility payment, the annual payment amount is the greater of a percentage of their household income or a flat dollar amount, but is capped at the national average premium for a bronze level health plan available through the Marketplace. They will owe 1/12th of the annual payment for each month they or their dependent(s) don't have either coverage or an exemption.

For 2014, the annual payment amount is the greater of:

1 percent of their household income that is above the tax return filing threshold for their filing status, or

Their family's flat dollar amount, which is $95 per adult and $47.50 per child, limited to a family maximum of $285,

But capped at the cost of the national average premium for a bronze level health plan available through the Marketplace in 2014.