6.8 Million Americans To Owe Taxes Due to Obamacare #WeAreScrewed
Fuzzy Obamacare Subsidies Could Leave Half Of Obamacare Customers Owing The IRS
Source: The Daily Caller (01/03/2015)
Up to half of the 6.8 million Americans who received premium subsidies in 2014 could end up owing the federal government money because of it this tax season, The Wall Street Journal reports.
According to an analysis by top tax firm H&R Block, as many as half of the customers who got premium subsidies may end up owing the federal government money after being overpaid throughout the year.
The problem is that customers have to estimate their income for the upcoming year when applying for Obamacare subsidies — and any mistakes or changes could mean that the IRS actually overpays them.
“The ACA is going to result in more confusion for existing clients and many taxpayers may well be very disappointed by getting less money and possibly even owing money,” Charles McCabe, president of Peoples Income Tax and the Income Tax School, told WSJ. “The whole implementation of Obamacare will be frustrating for tax preparers.”
On the upside, however, the mass confusion at the IRS and amongst tax preparers could leave the agency without adequate resources to fully enforce the individual mandate. And because the White House is behind on approving paperwork for the IRS’ implementation already, according to a report last month from the American Action Forum, the tax on the uninsured is likely to be only lightly enforced this year.