Get ready for some new taxes!
Obamacare enrollees who received subsidies to help pay for coverage will soon have to reconcile how much they actually earned in 2014 with how much they estimated when they applied many, many months ago.
This will likely lead to some very unhappy Americans. Those who underestimated their income either will receive smaller tax refunds or will owe the IRS money.
That's because subsidies are actually tax credits and are based on annual income, but folks got their 2014 subsidy before knowing exactly what they'd make in 2014. So you'll have to reconcile the two with the IRS during the upcoming tax filing season.
It won't be surprising if many enrollees guessed wrong. The sign up period began in October 2013 and many people did not know what they'd earn in 2014. Some went off what they earned in 2012.
Also, it was up to consumers to report major changes in their circumstances, such as landing a new job or getting married, so their subsidy amounts could be recalculated.
Yea free health care! Are you surprised? You are if you were silly enough to believe in this crap.
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