Saw this coming, everybody should have!

[dw1911]

http://money.msn.com/business-news/a...24&id=17879199
Pass it on.

Tax refunds may get hit due to health law credits

August 24, 2014 8:31 AM ET

By RICARDO ALONSO-ZALDIVAR



WASHINGTON (AP) - Taxes? Who wants to think about taxes around Labor Day?

But if you count on your tax refund and you're one of the millions getting tax credits to help pay health insurance premiums under President Barack Obama's law, it's not too early.

Here's why: If your income for 2014 is going to be higher than you estimated when you applied for health insurance, then complex connections between the health law and taxes can reduce or even eliminate your tax refund next year.

Maybe you're collecting more commissions in an improving economy. Or your spouse got a better job. It could trigger an unwelcome surprise.

The danger is that as your income grows, you don't qualify for as much of a tax credit. Any difference will come out of your tax refund, unless you have promptly reported the changes.

Nearly 7 million households have gotten health insurance tax credits, and major tax preparation companies say most of those consumers appear to be unaware of the risk.

"More than a third of tax credit recipients will owe some money back, and (that) can lead to some pretty hefty repayment liabilities," said George Brandes, vice president for health care programs at Jackson Hewitt Tax Service.

[TLE2]

I'm aware of taxes: "quarterly" payment due 9/15 since I'm self employed.

[DrHenley]

Obamacare...the gift that keeps on giving...

Have you heard about the Oregon debacle where Oracle, who developed the Oregon Obamacare site, and Oregon are suing each other over the failed web site?

http://www.latimes.com/nation/nation...822-story.html

[brownie]

If your subsidy was based on one figure and that figure changes higher, the subsidy will/would have been less to begin with.

[milkmanjoe]

We do not get subsidized, but we pay out a salary in taxes to subsidize others.

[brownie]

I refused to sign on for Ocare msyelf. I went back to the VA for another 3 years till SS kicks in. Then I'll still use the VA for most everything but 911 emergency medical help if needed.

I refused Ocare because too many docs won't accept those patients, like many who don't take Medicare patients

[milkmanjoe]

Originally Posted by brownie

I refused to sign on for Ocare msyelf. I went back to the VA for another 3 years till SS kicks in. Then I'll still use the VA for most everything but 911 emergency medical help if needed.

I refused Ocare because too many docs won't accept those patients, like many who don't take Medicare patients

Yup, I won't name docs, but I hear of a few here in Florida that are very selective with regards to who the treat. I had one of my doctors refuse my health insurance, they are cash and carry now. I have great insurance, even mine doesn't pay enough.

[dwsmithjr]

So, basically, if you make more money, you pay higher taxes and any refund you may have expected based on your lower income will be lower or you will not get a refund at all.

Or, if you were getting a tax credit based on your income and your income goes up, you probably will no longer qualify for the tax credit and therefore you will pay more tax and get a smaller refund or no refund at all.

How is this news? Why would this be a surprise to anyone?

[DrHenley]

Originally Posted by dwsmithjr

How is this news? Why would this be a surprise to anyone?

Let me break it down for you...

• Obamacare raised the cost of insurance for nearly eveyone.
• To offset the cost of insurance they have subsidies to make it look like it's not as expensive as it really is.
• So now instead of having affordable insurance, you have prohibitively costly insurance that is paid for by the taxpayers.
• But because it is paid for by the taxpayers there are a labyrinth of regulations you have to abide by that almost nobody completely understands.
• Some people, because of how much they were making when they APPLIED for Obamacare, were given a subsidy to make them believe that they have cheap insurance.
• But because they could not see the future, they didn't realize that they DON'T actually qualify because of how much money they will make in the FUTURE.
• So the "CHEAP" Obamacare insurance they THOUGHT they were getting is really *EXPENSIVE* because they will have to pay for it themselves - RETROACTIVELY.

[milkmanjoe]

To me there are two problems here...... A poorly written law that is incomprehensible due to its volume.

Poor financial planning on peoples' parts. Really, it should be a very small part of the population who sees such a windfall that it screws them. I project income three years in advance, always come up short. But I try to do better.