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.
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.
“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.
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..........
And these are the sickest group
A large part of the group are people too sick to work. This will further drive up the health care costs.