I'm dragging a post from PDF here about obamacare

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1 Just an FYI for anyone who received a tax credit for health insurance Today at 8:55 am
ppaca

Posts: 1246
Join date: 2013-10-05
http://finance.yahoo.com/news/tax-refunds-may-hit-due-115900935.html

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.

Two basic statistics bracket the potential exposure:

The average tax credit for subsidized coverage on the new health insurance exchanges is $264 a month, or $3,168 for a full 12 months.

The average tax refund is about $2,690.

Having to pay back even as little as 10 percent of your tax credit can reduce your refund by several hundred dollars.

Tax giant H&R Block says consumers whose incomes grew as the year went on should act now and contact HealthCare.gov or their state insurance exchange to update their accounts.

They will pay higher health insurance premiums for the rest of this year, but they can avoid financial pain come spring.

"As time goes on, the ability to make adjustments diminishes," warned Mark Ciaramitaro, H&R Block's vice president of health care services. "Clients count on that refund as their biggest financial transaction of the year. When that refund goes down, it really has reverberations."

The Obama administration says it's constantly urging newly insured consumers to report changes that could affect their coverage.

But those messages don't drive home the point about tax refunds.

"What probably isn't clear is that there may be consequences at tax time," said Ciaramitaro.

Aaron Albright, a spokesman for the Health and Human Services department, said the administration plans to "ramp up" its efforts.

Concern about the complex connection between the health care law and taxes has increased recently, after the Internal Revenue Service released drafts of new forms to administer health insurance tax credits next filing season.

The forms set up a final accounting that ensures each household is getting the correct tax credit that the law provides. Various factors are involved, including income, family size, where you live and the premiums for a "benchmark" plan in your community.

Even experts find the forms highly complicated, requiring month-by-month computations for some taxpayers.

Taxpayers accustomed to filing a simplified 1040EZ will not be able to do so if they received health insurance tax credits this year.

Some highlights:

—You may have heard that the IRS cannot use liens and levies to collect the law's penalty on people who remain uninsured. But there is no limitation on collection efforts in cases where consumers got too big a tax credit. If your refund isn't large enough to cover the repayment, you will have to write the IRS a check. "They are not messing around," Brandes said.

—Health insurance is expensive, and with that in mind, the repayment amount the IRS can collect is capped for most people. For individuals making less than $22,980 the IRS can only collect up to $300 in repayments. That rises to $750 for individuals making between $22,980 and $34,470. For individuals making between $34,470 and $45,960, the cap is $1,250.

For families, the cap is double the amount that individuals can be charged, but the income thresholds vary according to household size. An IRS table may help simplify computation, which is based on the federal poverty levels for 2013.

—There is no collection cap for households making more than four times the federal poverty level. They face the greatest financial risk from repayments, because they would be liable for the entire amount of the tax credit they received.

Those income thresholds are $45,960 and above for an individual, $78,120 and above for a family of three, and $94,200 for a family of four. Ciaramitaro says people facing that predicament should try to minimize their taxable income through legal means, such as putting money into an IRA. The IRS says it will work with taxpayers who can't pay in full so they understand their options.

—If you overestimated your income and got too small a tax credit for health care, the IRS will increase your refund.

Funneling health insurance subsidies through the income-tax system was once seen as a political plus for Obama and congressional Democrats. It allowed the White House to claim that the Affordable Care Act is "the largest tax cut for health care in American history."

But it also made an already complicated tax system more difficult for many consumers.

2 Re: Just an FYI for anyone who received a tax credit for health insurance Today at 9:50 am
2seaoat

Posts: 14504
Join date: 2012-08-30
Good advice. Simple solution for people whose income has increased. Adjust your gross income from line 37 by contributing to traditional IRA accounts until you adjust your income to the application for health insurance subsidy. This basically allows a person to bank the subsidy for retirement. Most income qualifications use adjusted gross income.

I guess seaoat sees no problem by not paying your fair share and screwing the tax payer. I guess he sees no problem at all making the middle class another group sucking on the gov teet?

Let's see, low income pays no tax at all, the very wealthy have loop holes and bailouts, now the middle class will ride the gov teet train too

Hmm nothing could go wrong with this right ?

So, if you're getting a subsidy based upon your low income and your income increases, I don't see a problem with an adjustment somewhere. Like the article said, if you don't report it immediately and get your medical policy subsidy adjusted, you are pocketing money you are not entitled to keep.

Where is the problem?

Eric wrote:

So, if you're getting a subsidy based upon your low income and your income increases, I don't see a problem with an adjustment somewhere.  Like the article said, if you don't report it immediately and get your medical policy subsidy adjusted, you are pocketing money you are not entitled to keep.

Where is the problem?

I have a problem with people who think that always having the "screw the gov" mentality as if to not realize its us, the tax payers they are screwing.

I have a problem with having a entire country on the government tit.

I'm sick of the mentality of let me get mine, screw whatever happens mentality.

We lost even freaking caring what was good for our country when patriotism was killed. Now its just a damn free for all, screw the rest of you country.

I already knew this was going to happen as far as people getting hit via their income taxes. I predicted it actually on the other forum.

But I wonder who will pay for stuff soon?

We need a flat tax

What about a national sales tax? I suspect that savvy folks will find a way to hide their income and avoid taxes, but when they hit a store and buy something, they are going to have to pay the sales tax.

Eric wrote:

What about a national sales tax?  I suspect that savvy folks will find a way to hide their income and avoid taxes, but when they hit a store and buy something, they are going to have to pay the sales tax.

In loo of a income tax. I am totally for it. But not both.

A tax like that would also catch under the table incomes. IM for it.

Personally speaking as a middle income worker, it would free up a HUGE portion of my income to purchase things that might provide me and my family with that American dream thing I heard about.

Eric wrote:

What about a national sales tax?  I suspect that savvy folks will find a way to hide their income and avoid taxes, but when they hit a store and buy something, they are going to have to pay the sales tax.

Will they?

How about the ones who buy and sell on e-bay and other internet sites where no sales tax is collected?

Then there are those who barter and no money is exchanged.

*****SMILE*****

https://www.youtube.com/watch?v=wQzUCO7rG0M

 

If they're going to make a national sales tax, they can figure out how to collect sales taxes through ebay. Outlets with a brick and mortar presence in a state already tax internet sales.

Bartering is a hassle, not easy and most folks don't mess with it... and probably won't, just to avoid a sales tax. Bartering will remain as it was, free of taxes. You can't tax a trade.

If people think Obamacare is a non issue for politics they better hold onto their pants come 2016 presidential elections. By 2015 the pinch will be in gull effect not only on doctors and hospitals but on people via their insurance premiums. And those people who lose their income tax refunds. Whew!

Calm down I am sure if we just give the leadership in Washington more money and less responsibility they can fix this.....

Eric wrote:

If they're going to make a national sales tax, they can figure out how to collect sales taxes through ebay.  Outlets with a brick and mortar presence in a state already tax internet sales.

Bartering is a hassle, not easy and most folks don't mess with it... and probably won't, just to avoid a sales tax.  Bartering will remain as it was, free of taxes.  You can't tax a trade.

So long as the feds are going to help collect and enforce the states sales tax. Otherwise I have no reason to support a tax that requires me to collect another penny or two on the dollar. I already tell people that if they want their new library, swimming pool addition, school projects, etc... that they can go collect taxes from the e-bay and other internet sources they shop at because I won't support raising the sales or property tax.

*****SMILE*****

https://www.youtube.com/watch?v=wQzUCO7rG0M

National Sales taxes may be too simplistic, anyway.

For instance, this thread about Obamacare overpayments could not be solved by sales tax. Some agency (the dreaded IRS?), would be needed to recover inappropriate subsidies, and how would the Feds know about the overpayments? Income tax forms? I would have hoped a national sales tax would obviate the need for the annual ritual of filing income tax forms.

DE, Iowa, like many states collect a tax off internet sales. They call it a "use tax".

Failure to pay this tax is commonplace and probably has never been enforced, but it is on the books.

http://www.iowa.gov/tax/educate/78535.html

I've been 100% for a national sales tax in place of any income taxes.. Do away with the income tax and put a 15% sales tax on everything, including food.. People would start growing some of their own veggies instead of buying lettuce and tomatoes grown in Mexico, Brazil, or Costa Rico.. The illegals and welfare abusers would be paying taxes just like the hard working citizens..

Eric wrote:

DE, Iowa, like many states collect a tax off internet sales.  They call it a "use tax".

Failure to pay this tax is commonplace and probably has never been enforced, but it is on the books.

http://www.iowa.gov/tax/educate/78535.html

Yes. The problem is attempting to track and enforce them. It's easy to tax a registered brick and mortar business. Not so easy to track someone who is using several user names to sell items on e-bay or another auction site. I've listened to guys bragging about selling anywhere from $2000 to $5000 a month and not paying any taxes on the income.

So I take it you see my point.

*****SMILE*****

https://www.youtube.com/watch?v=03TgkCVDlrA

Oh, yeah. I guess that ebay could work a deal with the states to withhold taxes from transactions, but people would probably revolt and take their business elsewhere.

Not a good thing for ebay, lol.

Honestly when DE said Internet tax i didn't pick ip exact what he ment

Now with what he just said he has a good point

Those people are acting as vendors but not paying taxes h
Mm

And people buying aren't paying taxes either.

Why would anyone have a problem w/ people who's income goes up and their tax credit down? People are not entitled to having a tax credit based on low income and then having an increase in income. It's the same if you get food stamps. If your income goes up your food stamps go down. If you don't report your income increase during the year then you pay it at the end of the year w/ your refund. Simple as that and entirely fair.

Who has a problem with that dreams?

The greedy assed people who ant the gov to pay for every little thing for them. That's who

Eric wrote:

National Sales taxes may be too simplistic, anyway.

For instance, this thread about Obamacare overpayments could not be solved by sales tax.  Some agency (the dreaded IRS?), would be needed to recover inappropriate subsidies, and how would the Feds know about the overpayments?  Income tax forms?  I would have hoped a national sales tax would obviate the need for the annual ritual of filing income tax forms.

Flat Tax....National Sales Tax...In addition to closing some/many loopholes....Any simplification of this bloated tax code would certainly seem to be an improvement and would cut the need for the corrupt IRS on such a large scale...

It would be nice if we could fix the tax code then enact a law where lobbyists are incarcerated with no possibility of parole. (I was going to say shot on sight, but I'm not that brutal.)

That might eliminate what is wrong with Washington.

Eric wrote:

It would be nice if we could fix the tax code then enact a law where lobbyists are incarcerated with no possibility of parole.  (I was going to say shot on sight, but I'm not that brutal.)

That might eliminate what is wrong with Washington.  

I think they ought to share a cell with a lawyer.

Eric wrote:

And people buying aren't paying taxes either.

Exactly! Then these same people who shop on the internet and work at a public facility, while never setting foot in my business except when they want me to give them something, turn around and have the nerve to ask me to support a tax increase.

*****CHUCKLE*****

https://www.youtube.com/watch?v=-0kcet4aPpQ

Eric wrote:

It would be nice if we could fix the tax code then enact a law where lobbyists are incarcerated with no possibility of parole.  (I was going to say shot on sight, but I'm not that brutal.)

That might eliminate what is wrong with Washington.  

A lobbyist is nothing more than a person trying to get their product or service on a good standing. What we need is more integrity as well as a penalty for government BRIBES. And if we are going to address gov bribes I suppose we need to campaign reform.

And I thought about the ebay thing. When a person first buys whatever they are selling on ebay, don't they pay taxes? I know when I bought something on toys r us, I paid taxes. However, I rarely shop online. Im still living in the dark ages.

Campaign reform is fine... but unlikely in any meaningful way. If I could make the rules... I would simply hold the politicians accountable. They may have NO contact with monied interests. To be followed soon after by hangings in the public square.