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To: what's up
Washingon Post also reported the other day that several hundred thousand will have to pay BACK the subsidies next year because there are discrepancies in what they earn and what the Gov't has on record.

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It's like this .... :

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.

Republicans have by and large ignored the tax credit issue unless talking about the budget implications. Perhaps the silence is due to the fact that Congress has voted to change ObamaCare twice to increase the financial risk that families could face when they take the credit.

Since the enactment of ACA, these limits have been amended twice: first under the Medicare and Medicaid Extenders Act of 2010 (P.L. 111-309), and then under the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayment Act of 2011 (P.L. 112-9). Congress changed the payback protection to vanish at the 400% poverty level and increased the payback amounts at 200% and 300% FPL from what they had been before.

The result will be surprise bills from the IRS in the mail come tax time 2015, in the order of a couple hundred dollars all the way up to full value of any subsidy received if a family crosses the 400% FPL threshold. (This could be $10,000-$12,000 for a family of four, as an example.) Just a few dollars of extra income could result in thousands of back taxes to be paid.

9 posted on 06/18/2014 12:19:16 PM PDT by Qiviut ( One of the most delightful things about a garden is the anticipation it provides. (W.E. Johns)
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To: Qiviut
Republicans have by and large ignored the tax credit issue unless talking about the budget implications

I find it interesting also that the Dems don't talk about them nearly as much as I thought they would.

To advertise them is to invite lots and lots of fraud and the IRS is already going to have to go after hundreds of thousands of people who are underpaying as it is.

10 posted on 06/18/2014 12:32:00 PM PDT by what's up
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