ObamaCare Credits Could Trigger Surprise Tax Bills for Millions: “That’s scary. I had no idea, and I work in health care”

Posted by on Apr 02, 2013 at 2:35 pm
Barack Obama

Nobody in Washington read the damn bill, so why would anyone expect the schlubs forced into ObamaCare to know what the hell surprises await them. Is it any wonder Obama’s running around campaigning on anything other than ObamaCare these days? He’d rather focus on anything else to distract the low-information voters out there.

Millions of people who take advantage of government subsidies to help buy health insurance next year could get stung by surprise tax bills if they don’t accurately project their income.

President Barack Obama’s new health care law will offer subsidies to help people buy private health insurance on state-based exchanges, if they don’t already get coverage through their employers. The subsidies are based on income. The lower your income, the bigger the subsidy.

But the government doesn’t know how much money you’re going to make next year. And when you apply for the subsidy, this fall, it won’t even know how much you’re making this year. So, unless you tell the government otherwise, it will rely on the best information it has: your 2012 tax return, filed this spring.

What happens if you or your spouse gets a raise and your family income goes up in 2014? You could end up with a bigger subsidy than you are entitled to. If that happens, the law says you have to pay back at least part of the money when you file your tax return in the spring of 2015.

That could result in smaller tax refunds or surprise tax bills for millions of middle-income families.

“That’s scary,” says Joan Baird of Springfield, Va. “I had no idea, and I work in health care.”

Sorry, Joan, too late. The American people have spoken and they want to be punished.

Baird, a health care information management worker, is far from alone. Health care providers, advocates and tax experts say the vast majority of Americans know very little about the new health care law, let alone the kind of detailed information many will need to navigate its system of subsidies and penalties.

“They know it’s out there,” said Mark Cummings, who manages the H&R Block office where Baird was getting her own taxes done. “But in general, they don’t know anything about it.”

Well, now, that sums things up nicely, huh? They know it’s out there, but don’t know anything about it. Wonderful.

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3 Responses to “ObamaCare Credits Could Trigger Surprise Tax Bills for Millions: “That’s scary. I had no idea, and I work in health care””

  1. Pogo on 2/02/13 at 11:44 pm

    I wouldn’t worry too much about getting a raise or whatever. After all Obama will still be president, how likely is it anybody in one of the exchanges will be suddenly making a lot more than last year? Chances are if you have a job at all, or more likely 2 or 3 to make ends meet in the “O”conomy you will be really lucky.

  2. glorious rainbow utopia on 3/03/13 at 7:48 pm

    But dear leader is the kewlest marxist rockstar ‘professor’ evar so whatever cost is worth it comrade.