What Ya Think

[Wayne Goodwin]

Obamacare credits could trigger tax bills

The Associated Press

WASHINGTON — Millions of people who take advantage of government subsidies to help buy health insurance next year could get stung by surprise tax bills if they don’t accurately project their income.

President Barack Obama’s new health care law will offer subsi­dies to help people buy private health insurance on state-based exchanges, if they don’t already get coverage through their employers. The subsidies are based on income. The lower your income, the bigger the subsidy.

But the government doesn’t know how much money you’re going to make next year. And when you ap­ply for the subsidy, this fall, it won’t even know how much you’re mak­ing this year. So, unless you tell the government otherwise, it will rely on the best information it has: your 2012 tax return, filed this spring.

What happens if you or your spouse gets a raise and your family income goes up in 2014? You could end up with a bigger subsidy than you are entitled to. If that happens, the law says you have to pay back at least part of the money when you file your tax return in the spring of 2015.

That could result in smaller tax refunds or surprise tax bills for mil­lions of middle-income families.

[Lifesighs]

I think this will be worked out and not be a problem.

[ProblemAgain]

pretty straightforward...if you get a subsidy for healthcare, it is based on your income level and if it turns out you had more income than you claimed, you owe part of the taxpayers money back. i think that falls under the heading of 'good stewardship of taxpayer monies', don't you? and it would be the same if it was under romneycare...

[Wayne Goodwin]

Don't think it will affect me .  Don't know enough about this health care mess to comment ...

[Shadowman]

First, I am glad someone in government is trying to address the healthcare issue. Back when I still could afford insurance it went up 10-15% a year and all the critics now complaining about any increases said nothing back then, and did nothing.

I see nothing wrong with paying back the amount one is not eligible for and in reality I am guessing not a big category of people will be seeing a big raise and those that have a job with a corporation doing that well already have health care offered through their corporation.

Many small employers are looking forward to the exchange kicking in as they will no longer have to worry about providing health insurance as that will end up being more of an individual responsibility through private insurance, the exchange, through the VA or other venues.

[blithe spirit]

 People who work for themselves have to estimate their taxes...retired folks that have dividends have to estimate also. I used to have to do the same. I have had to change my withholding for this next year because of the withholding changes that went into effect this past year. The taxes you owe change according to one's circumstances.

I would think getting a subsidy would be a good thing, considering the family is now covered with health insurance....and if the subsidy is reduced it means your income increased...again, seems like a good thing again.

I know of people disabled who have had to repay some of their disability when they went back to work and it's done through tax refunds they people get.

[Lifesighs]

A big part of the population is already on a national healthcare system, Medicare, Medicaid and the Military it's all set up and working for the people it serves. You can buy additional coverage with Medicare I don't bother, the monthly rates are more than any co-pays I've encountered. My husband has been hospitalized used ambulance and the amounts for out of pocket have been reasonable. The year he was in intensive care at two hospitals we paid only a thousand out of pocket.

[Wayne Goodwin]

Two years ago i ended up in hospital from a Bacteria infection in my blood . I was loosing weight fast , couldn't keep anything down , was seeing things that didn't exist . Was in there 6 days . After medicare paid their part i was left with 1100 dollar bill Doctor bill around 300 dollars . For some reason the 1100 dollars was paid by some other thing . Since I'm not 65 my extra health plan would be more than i can pay for what i draw . Will see how the new plan will help or not . That is the million dollar question...

[crestofwaves]

I know that Obama promised exchanges which were supposed to lower costs, and between him, the Dems and Repubs, this part of the whole thing is not ready and will not be ready for another year.  Another example of the government not doing what it promised.

 

What bozos.

[ProblemAgain]

the exchanges were to be partnerships between state and federal but in some cases have been refused by people like rick perry absolutely refusing to set up such exchanges. the problem we have these days is EVERYTHING has become political and filtered thru that lens. as an example, i was reading a news piece on a trial in england....some of the comments about the defendants were that they naturally were obama democrats on welfare.....(hint hint england...)...but the basic rule of trying to do the right thing for your constituents seems to be forgotten in favor of the politics of the situation. another example...chris christie being called a rino for cooperating with the federal government after the hurricane.....so it is better that your own citizens suffer rather than have anyone appear in a good light ....something seriously wrong there....

[Shadowman]

Some parts of The Affordable Care Act have already gone into effect such as being able to get insurance with a preexisting condition, being able to keep adult children on your insurance until age 26, etc.  The mandatory insurance or participation in the exchange begins come October. There will always be some free riders but encouraging people to get insurance in this fashion will insure that most if not nearly all have some skin in the game so to speak.