What was the total annual tax penalty for individuals who did not meet the coverage deadline in 2014?

In 2014, under the Affordable Care Act, individuals who did not obtain health insurance were subject to a tax penalty designed to encourage compliance with the individual mandate. The penalty structure for that year established that individuals could either pay a flat fee of $95 or 1% of their taxable income, whichever was higher.

This approach was intended to provide a minimal deterrent against foregoing health coverage while gradually increasing the penalty in later years to strengthen compliance. For 2014, the penalty structure was relatively lenient compared to subsequent years, where both the flat fee and percentage of income increased.

In this context, the answer reflecting the correct penalty aligns with the established guidelines of the ACA for that year. Understanding this penalty is critical for comprehending the implications of the individual mandate and the ACA's overall goal of expanding health coverage.