If i file along with my wife and owe the penalty for not having healthcare, will they deduct the penalty from our tax refund or will we have to pay it seperately?

[hometwnhero]

i want to include my wife to receive the 24,000 standard deduction, but we will have to pay the ACA mandate penalty for her.. i am asking if the penalty will be taken out of my return or will we owe it separately? also unpaid outstanding student loans claim my taxes every year already, will that effect this scenario>?? Help please?? 

[DoninGA]

The penalty reduces your tax refund or increases your taxes owed.  It is not a separate payment.

[hometwnhero]

thank you Donna.. what if my tax refund is taken every year by outstanding federal student loans? will they take that first leaving us owing for the insurance penalty?

[DawnC0]

If you file a joint return the penalty will be added to your tax return; it is not a separate payment.  So, for example, if your tax return shows a refund of $1000 and you go through the health insurance section and indicate that your wife has no insurance, the penalty will be applied and your refund will go down.  

And then the IRS will offset whatever refund remains against your students.  

If you owe tax or the penalty causes you to owe tax, nothing will be applied to your student loan and you will get a bill.