Are ObamaCare's Tax Credits Harmless? The Little Understood Dark Side Of The Subsidies
By accepting a tax credit, low-income or lower-middle class families face significant tax ramifications and potential financial risk. Congress has changed the rules twice on consumers for the credits, making the income cliffs steeper, and fully equipping the IRS to claw back overpaid subsidies (unlike the individual mandate penalty).
The flip side of the tax credits is almost unknown to the general public.
Besides having to pay back some or all of the premium subsidies if someones income fluctuates upward after taking a premium subsidy, they would also have to pay back any cost sharing subsidies taken if their income rises above 250% FPL. People with incomes lower than 250% have lower deductibles, copays and drug costs.