Posted on 08/22/2015 7:05:21 AM PDT by SeekAndFind
Remember the hue and cry when it looked like the Supreme Court could deny ObamaCare subsidies to millions of people? Looks like it could happen anyway, thanks to the law's tax complications.
Fully 40% of taxpayers who received ObamaCare subsidies last year haven't filed their taxes yet and are at risk of losing their subsidies for next year, according to the American Action Forum.
An update on ObamaCare that the IRS recently sent to Congress said that out of the 4.5 million taxpayers who got ObamaCare's "advance payment" subsidies last year, only 2.7 million had filed the required tax forms as of the end of this May.
The rest filed for an extension (360,000), haven't filed at all (710,000) or didn't submit the new ObamaCare form — Form 8962 — that's required to make sure they got the right subsidy amount (760,000).
These 1.8 million taxpayers actually represent 2.8 million individuals, according to the IRS, since one taxpayer can file on behalf of his spouse and children. In a separate document, the IRS notes that if these taxpayers don't file and if they try to sign up for a plan for 2016, they won't be eligible for ObamaCare subsidies. And they might have to "pay back some or all of the 2014 advance payments of the premium tax credit." This is the latest evidence of just how wildly complex ObamaCare's subsidy scheme is. When enrollees sign up for coverage, they have to forecast what their income will be next year, because it determines their subsidy amount.
Guessing correctly has proved nearly impossible.
(Excerpt) Read more at news.investors.com ...
There is a reason why they haven’t filed their tax forms. It’s because that subsidy money is taxable as income and their taxes go up because of it, that’s why.
Only those who get that yearly Santa EITC check AND have no speakable income to note that will result in them actually PAYING something [gasp!] are the ones who have filed.
This is getting kind of humorous.
They forgot who’s fictitious name they filed it under.
The best way to force the repeal of a very bad law, is to enforce all its provisions.
And on enforcement, the Current Occupant is very keen on getting the hooks sunken deep on this farce known as “Patient Protection and Affordable Care Act of 2010”. How many oxymorons can be put in the title of one piece of legislation?
Just another land mine for the next President to defuse after taking office.
Where’s that little boy with the shocked face? These people will have a free year of health care (which they’ve used to the max), and by the time the feckless bureaucrats at the IRS catch up with them, they will have several more years of free health care. This is like handing thousands of invaders from the third-world a summons to come to an immigration court in 90 days, and surprise, surprise, they don’t show up…but they have managed to sign up for all the Free Stuff that their squatter relatives have told them about.
This is why people are fed up with the federal government. To think that the Founders fought the first war for independence over a piddly amount of taxation. They would be so ashamed of our gutless nation.
Yes, correct. But more and more illegals now are working on the books with fake SSNs so they can claim EITC.
Meanwhile, the rest of us 360,000,000 got monetarily punched in the nuts for nothing?
That's how royal decrees work.
No one will lose their ZeroSubsidies.
No one will lose their SNAP food stamps.
No politicians with courage exist.
The FREE TRAIN rides on until the country collapses under the weight.
I know a guy who makes 6 figures, declares about 5 % of it as income, signed up for Obama care, pays like $13 a month...saved himself abut 6 hundred a month when he was dropped by his former carrier...
I’m sure he one of many...
Imagine that...next year huh.....just when obuma is leaving office, makes one wonder how much money did obuma put into off shore banking?????
The next President could start with invalidating any exemption, delay, or dispensation Obama gave with respect to ObamaCare. Make them ALL suffer equally. That includes removing any exemption Congress (or their staff) has.
Remember all those liberals who were yelling about people dying in the streets because of no health insurance? And those bumper stickers saying “Free Heathcare” for all? The realization is slowly starting to set in.
HERE, HERE !!
Its FUBAR times Infinity !!
It’s ridiculous, I pay $400 a month for horrible insurance and a loser near by gets to pay nothing for a health plan that is several tiers higher than mine.
There was no $2000 per family savings and costs went through the roof and deductibles even more so.
I think my family has over $12,000 deductibles, $9,000 in premium costs and then we get some not so good care. That is almost $2000 a month for bad care. How is this working for me? Works great for all the Democrats who are on the system who pay nothing.
“subsidy money is taxable as income”
That’s not quite right, but the situation is even worse. The subsidy as such is not taxable. However, the amount of the subsidy diminishes as income approaches 400% of the poverty line. Then, at exactly 400% of poverty line, the still fairly large subsidy at 399.99% disappears entirely
In my own case, the subsidy would be about $7500 at 399.99% of poverty line. It is zero at 400% of poverty line. So, if I had about income of just $1 over the 400% hurdle, I’d face a $7500 marginal income tax. I’m fortunate in that I make better than 400% of poverty line. Still, for that single dollar, my marginal income tax rate is 750,000%.
I am sure a significant number of taxpayers had this bomb explode in the minefield that we call ObamaCare.
“Meanwhile, the rest of us 360,000,000 got monetarily punched in the nuts for nothing?”
Yes, exactly!
What you are seeing is gov attempt to buy permanent control of the country by giving freebies to the illegals and the dindu nuffins!
Health care is going to the doctor for treatment, obamacare is providing crappy insurance that still forces a huge outlay of cash before any benefit is delivered. The real crime is the WIC and EBT payouts to the illegals.
Companies in Texas are making millions providing dental care to illegals. Our illegals in Texas have the best teeth of any state!!! They may “no habla English”, but taxpayers have payed millions for a nice smile.....
The form 8962 is a mathematician’s nightmare. I have college calculus background and I found it near impossible.......I can only imagine what it’s like to non math oriented folks..........
I can imagine. But I’m an old white guy never on welfare, subsidy or EITC, SNAP, Section 8, et al so what would I have to do with that form?
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