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Next Big Obamacare Shock May Come at Tax Time
Newsmax ^ | 12-28-13 | Sandy Fitzgerald

Posted on 12/28/2013 6:03:32 PM PST by afraidfortherepublic

People who use subsidies to help pay for their Obamacare policies may get a nasty shock at tax time, when the Internal Revenue Service could hit them with a big demand to repay the money.

While it's in the law, it's still likely to make plenty of Obamacare subscribers angry at the IRS.

"If I were the IRS, I would be very concerned that I’m going to be viewed as the villain when people have to pay back money the government gave them for health insurance,” says Chris Condeluci, who served as Senate Finance Committee GOP tax counsel when Obamacare was being drafted.

According to the tax code, insurance buyers must be sure to alert insurance exchanges to life changes that affect their incomes through the year, reports Politico.

A new job, promotion, or anything that causes income to go up could result in a demand to return the tax credits, if the life change isn't reported, according to the new rules.

Recipients who lose income could get a tax refund when next year's taxes are calculated in 2015, but more likely, they'll get a bill. For example, in California, 38 percent of people who get tax credits to pay for their healthcare are expected to get bills totalling more than $850 each if they don't report income changes.

Many people, instead of having to cough up the money for the bill, instead will see smaller income tax returns, said University of California Berkeley professor Ken Jacobs, who co-wrote a study on the issue for healthaffairs.org.

Taxpayers can choose to pay the full price for their Obamacare policies and then collect refunds for the tax credits they passed up when tax time rolls around. However, many people choose to take the tax credits when picking insurance plans to help absorb...

(Excerpt) Read more at newsmax.com ...


TOPICS: Business/Economy; Government; News/Current Events; Politics/Elections
KEYWORDS: crappycare; democrats; irs; irsobamacare; obama; obamacare; subsidy; taxes

1 posted on 12/28/2013 6:03:32 PM PST by afraidfortherepublic
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To: afraidfortherepublic

It will be forgiven with the wave of a hand. So let it be written. So let it be so.


2 posted on 12/28/2013 6:05:14 PM PST by Jeff Chandler (Obamacare: You can't make an omelette without breaking a few eggs.)
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To: Jeff Chandler

3 posted on 12/28/2013 6:06:28 PM PST by BenLurkin (This is not a statement of fact. It is either opinion or satire; or both.)
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To: afraidfortherepublic

hm Arpil 15th....tax deadline ...November 4th? Election day....

great timing indeed. People will be HIGHLY suspicious of the party that brought them Obamascare


4 posted on 12/28/2013 6:06:51 PM PST by MeshugeMikey ( Its beginning to look a lot like Kwanzaa)
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To: afraidfortherepublic

Ain’t communism just grand? LOL!


5 posted on 12/28/2013 6:09:10 PM PST by FlingWingFlyer (The Truth Is Out There. Just don't let anyone know that you're looking for it.)
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To: afraidfortherepublic
.... Hey .... the sheeple voted for the Dork in Chief without regard for the dire clarion warnings being shouted at the time of the election so I say they all do what Jean-Jacques Rousseau suggested so many years ago ...... Let Them Eat Cake!!!
6 posted on 12/28/2013 6:10:35 PM PST by R_Kangel ( "A Nation of Sheep ..... Will Beget ..... a Nation Ruled by Wolves.")
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To: afraidfortherepublic

If you like your money, you can keep your money. PERIOD!


7 posted on 12/28/2013 6:13:13 PM PST by FlingWingFlyer (The Truth Is Out There. Just don't let anyone know that you're looking for it.)
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To: R_Kangel

” the sheeple voted for the Dork in Chief without regard for the dire clarion warnings”
________________________________________
Let them eat cake.


8 posted on 12/28/2013 6:16:04 PM PST by AlexW
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To: afraidfortherepublic
If I were the IRS, I would be very concerned that I’m going to be viewed as the villain

Oh really?


9 posted on 12/28/2013 6:16:06 PM PST by darkwing104 (Forgive but don't forget)
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To: MeshugeMikey

The timing is about 2 months greater than the average American’s attention / grudge-holding span. Kind of fortuitous for the pols robbing Peter in order to re-distribute to Paul eh?


10 posted on 12/28/2013 6:16:10 PM PST by jurroppi1
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To: afraidfortherepublic

On another note, will the people receiving insurance subsidies have to pay income tax on the subsidies? Are the subsidies considered taxable income?


11 posted on 12/28/2013 6:17:14 PM PST by rawhide
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To: afraidfortherepublic

Even worse will be the insult added to injury when they realize the O-Care Web-insult site purposefully miscalculated their subsidy to entrap them into signing up for the nearly free insurance. Can hear the “so sad, so sorry, but pay up sucker”.


12 posted on 12/28/2013 6:17:43 PM PST by RetiredTexasVet (Some people might call it a confidence game or swindle, others call it ObamaCare!)
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To: afraidfortherepublic

We sometimes do Prevailing Wage jobs that, for a couple of months of the higher wages, would put a guy over the annual income cap at tax time.

Next year, he may be at the lower level again. A string of bad weather could mean he would earn even less than he did last year.

While I get paid the same hourly rate, my annual income can vary by $10-15,000 from year to year.


13 posted on 12/28/2013 6:17:58 PM PST by digger48
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To: afraidfortherepublic

maximum fubar ...let’r rip!!! let the chips fall where they may!!


14 posted on 12/28/2013 6:21:01 PM PST by dennisw (The first principle is to find out who you are then you can achieve anything -- Buddhist monk)
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To: rawhide

On another note, will the people receiving insurance subsidies have to pay income tax on the subsidies? Are the subsidies considered taxable income

____________________________

I’m sure the regulations dealing with this issue are written in bureaucratic double talk, and will at least initially be interpreted in different ways by different IRS offices and even different examiners.


15 posted on 12/28/2013 6:24:22 PM PST by I_Like_Spam
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To: jurroppi1

Fortuitous indeed.... Unfortunately, for the rest of the Nation!


16 posted on 12/28/2013 6:26:02 PM PST by MeshugeMikey ( Its beginning to look a lot like Kwanzaa)
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To: MeshugeMikey
great timing indeed. People will be HIGHLY suspicious of the party that brought them Obamascare

Sadly, the republican party isn't any better.

17 posted on 12/28/2013 6:42:29 PM PST by OneWingedShark (Q: Why am I here? A: To do Justly, to love mercy, and to walk humbly with my God.)
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To: afraidfortherepublic

When people lose their insurance and find they do not qualify for a subsidy, make too much for Medicaid and cannot begin to afford the cheapest Obamacare plan and are left with no health insurance and then get taxed (a.k.a fined)there will be pandemonium.


18 posted on 12/28/2013 6:43:36 PM PST by The Great RJ
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To: OneWingedShark
There is a rather awesme crevice between the two parties

The Republican Party doesnt count amongst its members a President dedicated to the downfall of America!


19 posted on 12/28/2013 6:47:43 PM PST by MeshugeMikey ( Its beginning to look a lot like Kwanzaa)
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To: afraidfortherepublic

Unless you’re at 400% of the federal official poverty level, no obligation to repay federal health care subsidies is incurred.

You still get to keep your Obamacare subsidies if you were eligible for the silver plan.


20 posted on 12/28/2013 6:52:26 PM PST by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
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To: Jeff Chandler

Yet every new “shock” is easily absorbed by our absentee citizens thereby diffusing the term “shock”, translation next big “non-event”.


21 posted on 12/28/2013 6:52:58 PM PST by Kenny
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To: afraidfortherepublic

“If I were the IRS, I would be very concerned that I’m going to be viewed as the villain...”

Yeah, right. That’ll stop ‘em.


22 posted on 12/28/2013 6:59:38 PM PST by Attention Surplus Disorder (At no time was the Obama administration aware of what the Obama administration was doing)
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To: MeshugeMikey
There is a rather awesme crevice between the two parties.
The Republican Party doesnt count amongst its members a President dedicated to the downfall of America!

Given all the irregularities of his eligibility-claims, and the Republican party's lackluster pursuit thereof, it looks like they're complicit.
Given the 'investigation' of Fast & Furious —a clear case of State Sponsored Terrorism and probably one of the easiest Treason cases— yielding jack-shit, it looks like they're complicit.
Given the "roll over and play dead" they do allowing arbitrary changes of the ObamaCare law, it looks like they're complicit.
Given how they nominated Obama's political clone in 2012, it looks like they're complicit.
Given how they passed the NDAA which allows indefinite detention (essentially suspending Habeus Corpus), it looks like they're complicit.

23 posted on 12/28/2013 7:22:04 PM PST by OneWingedShark (Q: Why am I here? A: To do Justly, to love mercy, and to walk humbly with my God.)
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To: All

Far closer than we may think:
‘Unintended Consequences’ is a novel by John Ross.
Search it, very close to NOW.


24 posted on 12/28/2013 7:26:51 PM PST by elpinta (Jer. 10:23 - It really holds true!)
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To: afraidfortherepublic

It is rather ironic that obamacare is HAMMERING vast swaths of obama kool-aid drinkers.

I guess they should have read THAT bill before they passed it.


25 posted on 12/28/2013 7:27:56 PM PST by 2banana (My common ground with terrorists - they want to die for islam and we want to kill them)
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To: FlingWingFlyer
If you like your money, you can keep your money. PERIOD!

"If you like your money, I will take your money and give it to someone who will like it better."

Sincerely,

Obama

26 posted on 12/28/2013 7:55:54 PM PST by Tonytitan
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To: Tonytitan

I liked my health plan and Obama took it.


27 posted on 12/28/2013 8:02:08 PM PST by shineon (.)
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To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; cardinal4; ColdOne; ...

> People who use subsidies to help pay for their Obamacare policies may get a nasty shock at tax time, when the Internal Revenue Service could hit them with a big demand to repay the money.

Thanks afraidfortherepublic.


28 posted on 12/28/2013 8:18:38 PM PST by SunkenCiv (http://www.freerepublic.com/~mestamachine/)
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To: afraidfortherepublic

Of course, 47% of the US population don’t pay income taxes, and of those, 100% will receive health care credits that will be non-taxable, so they will be able to keep the Snap card, Zer0 phone, and keep sending the kids to Emergency care for every sniffle or knife wound.

Hey, who cares, half of the population jus don’t give a sh!t!


29 posted on 12/28/2013 8:33:03 PM PST by Noob1999 (Loose Lips, Sink Ships)
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To: FlingWingFlyer
If you like your money, you can keep your money. PERIOD!

Unless you are a productive member of society, in such case we will take your money for the good of society!

30 posted on 12/28/2013 9:54:02 PM PST by cpdiii
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To: goldstategop
Unless you’re at 400% of the federal official poverty level, no obligation to repay federal health care subsidies is incurred.

I don't think that is accurate. Subsidies and deductibles are on sliding scale between 139% and 400% fpl. Lets say a person starts out the open enrollment period at 200% fpl. Then for whatever reason that person ends up the year at 375% fpl. They will have to return some of those subsidizes. People on the exchanges are suppose to report qualifying events, but how does one factor something like overtime in?

31 posted on 12/29/2013 3:49:54 AM PST by EVO X
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To: jurroppi1; MeshugeMikey
The timing is about 2 months greater than the average American’s attention / grudge-holding span. Kind of fortuitous for the pols robbing Peter in order to re-distribute to Paul eh?

Keep in mind that this is only going to show up in 2014 taxes. Which will be due April 15 2015. That's about as far away from any election of consequence as possible - any off-cycle elections (like those in VA and NJ) are going going to be for the state legislature and lower offices.


32 posted on 12/29/2013 3:55:39 AM PST by tanknetter (L)
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To: rawhide
On another note, will the people receiving insurance subsidies have to pay income tax on the subsidies? Are the subsidies considered taxable income?

Soon to be classified as "luxuries" and taxed at an even higher rate...

33 posted on 12/29/2013 4:23:36 AM PST by trebb (Where in the the hell has my country gone?)
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To: afraidfortherepublic

Interesting, who in the IRS ever thinks that they’re NOT already viewed as the villian?


34 posted on 12/29/2013 6:49:11 AM PST by thatjoeguy (Every law passed is one person forcing their morals on someone else.)
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To: tanknetter

good point!


35 posted on 12/29/2013 8:21:31 PM PST by jurroppi1
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