Some Obamacare Recipients To See Tax Refunds Cut

Just another unanticipated consequence

(USA Today) A significant benefit of the Affordable Care Act is the opportunity to receive money-saving tax credits up front to cut the overall cost of health insurance, but now hundreds of thousands of consumers could owe back some of that money next April.

Those affected took advance payments of the premium tax credit for health insurance. Some married couples could owe $600 or $1,500 or $2,500 or even more. It might feel like a raw deal for some who are already suffocating under the escalating costs of health insurance.

“Health insurance is confusing enough, and now they’re adding the complexities of the Tax Code,” said Lorena Bencsik, a member of the Michigan Association of CPAs and owner of Prime Numbers in Ferndale.

When you file that 2014 tax return next year, the Internal Revenue Service will compare your actual income for the year with the amount you estimated when applying for exchange-based health insurance under the health insurance law.

Because Ocare recipients have to estimate their income, which can vary, in advance, to apply for Ocare, it can cause a problem when they go to file their taxes and the income is different. So, some people will have a bit of a shock when they file the following year. Happy Ocare, folks! Isn’t it awesome that our healthcare is now linked with our income and tax filing?

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One Response to “Some Obamacare Recipients To See Tax Refunds Cut”

  1. Jeffery says:

    So some receive smaller subsidies based on income. And you’re bothered by this why?

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