Posted on 06/11/2014 2:06:29 PM PDT by PoloSec
Obamacare's confusing tax credits, coupled with fines and the implementation of previously delayed mandates, will make the 2015 tax filing season “one of the most chaotic in years,” a national tax expert and tax preparer warned House lawmakers yesterday, reports the Washington Examiner.
“I am here today to tell you that the upcoming tax filing season has the potential to be one of the most chaotic in years,” said Ryan Ellis, an IRS enrolled agent and tax policy director at Americans for Tax Reform.
Ellis warned the House Ways and Means subcommittees on Health and Oversight on Tuesday that the confusion could specificallyl ead to low-income Americans paying an additional $500 or more in unexpected taxes.
From his prepared testimony:
So what happens if the flawed, confusing process results in a tax credit larger than what the law calls for? A hypothetical example might help illustrate: a health exchange customer selects an Obamacare exchange plan. The government estimates that this taxpayer will earn $30,000 this year, which makes her eligible for a $2000 tax credit. This $2000 is paid to the taxpayer’s insurance company to help with premiums. The next spring, our customer/taxpayer is filling out her tax return. Unfortunately, the government estimated the taxpayer earned too little and paid too large a credit. ... She actually earned $40,000, and so only had a $1500 credit coming to her. Depending on the taxpayer’s income level and availability of verified affordable workplace insurance, she will have to pay back much or all of the $500 overage to the IRS. This means skinnier refunds and maybe even liabilities, and it won’t be the taxpayer’s fault — it will be the government’s fault.
If only it makes a difference to the voters. I swear they are thick as anything and seem to find anything Obama does to them as nothing but sunshine. I swear even this probably won’t make a dent into the lovers of Obama. Instead of 6,000 dollar refund, they get 5.500 dollars instead? Oh I doubt they would even blame it on Obamacare. It just sucks that they are so blind!
At least this confirms what I’ve been trying to tell a lot of folks on FR. The subsidy is NOT added to your tax refund, it’s paid to the insurance company.
I bet the 1040 will be 10 pages...................and that’s the short form!........................
Just can’t do without more of that Obowma love.
I’m a self employed CPA, and I agree. Next winter will be a nightmare, and I’ll just have to bill for the extra work, and make sure that I blame Obama.
When people have to fill out their taxes their eyes will bug out...............
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.
Yes, the voters are blind. Their heads are still stuck firmly up their anal exit passageways, and they don’t see anything or care. Except for kim kardashian and justin beiber.
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.
Plus .... this isn’t like the mandate “tax” that can only be taken from refunds. The IRS has it’s full array of collection tools at its disposal to ‘claw back’ this money. As I said, really ugly stuff coming - more than a few families will owe thousands. We’ll see how much the populace loves Obamacare when the IRS subsidy horror stories start to surface, joining the medical horror stories.
As the article said, the public is pretty much ignorant of all this subsidy cr@p so it will be a nasty surprise when their good deal turns around and bites them in the pocketbook. Obamacare is just plain criminal on so many fronts.
The dems need voters so I doubt they would enforce any of the clawbacks under the current administration..
The dems need voters so I doubt they would enforce any of the clawbacks under the current administration.
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The IRS can/will do what it’s been doing - just go after anyone who disagrees with Obama.
Will they be able to blame a Republican? Maybe Bush?
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