If your income or family size has changed, the amount of subsidy for which you’re eligible could very well have changed.
If you fail to reconcile for the differences then you might get a surprise in the form of owing the government instead of receiving a refund. For example, if you got a raise or bonus in 2014 you could end up owing back the “credit” you thought you had for healthcare.
This system of taxation disguised as insurance credits is so complicated most people simply don’t understand it.
“People are likely to be surprised,” said Kathy Pickering, the head of the H & R Block Tax Institute, in an interview with CBS News. Americans who signed up for health care on the state or federal exchanges will have to reconcile their premium subsidies with their income, and their lives may have changed since they signed up. “They were estimating, and now, when they’re filing their taxes, they have what their actual income was, and there’s often a discrepancy,” Pickering said.
That discrepancy could mean that their refund check from the IRS is smaller than expected, which would be an unpleasant surprise. “If people swing from a refund to owing taxes, they’re going to be rather grumpy,” Henry Aaron, a senior fellow in Economic Studies at the Brookings Institution, told CBS News.
There are life events that might have changed a taxpayer’s situation. Pickering said, “We’ve all seen the economy is improving. Say you got a bonus you didn’t expect–people don’t think, ‘I should go back to the exchange to adjust my premium subsidy.'” If your income rises, and you forget to reflect that raise, you’ll owe the IRS.
Aaron, who is a member of the executive board for Washington, D.C.’s health exchange, said that individuals signing up in DC were told to be conservative and claim just 85 percent of the tax credit they believed they were entitled to because “the shock of having to pay back is greater than the deferred pleasure of getting back more than you were expecting.”
Pickering also pointed out that Americans who signed up for health care might have had a misconception about what the subsidies were: “For people who got the premium tax credit, they may have thought about it as a discount [on their health insurance premiums] and not something that they would have to pay back if there was a discrepancy.”
And then, there are the people who didn’t sign up for 2014 coverage. “People think the penalty is $95, but it varies, depending on the tax filer’s situation,” said Pickering. The variation here is the other part–those who declined to enroll face either a $95 per unenrolled family member fee or a fee equal to one percent of household income, above a minimum filing threshold, whichever amount is higher (although the maximum is capped at the national average premium for a bronze plan, which was $2,448 in 2014, according to the Tax Policy Center).
And there are other ways of failing to comply with the individual mandate, too. Pickering pointed out “the example of a couple that filed jointly, whose household income is $65,000, and one spouse has insurance and one doesn’t. They could end up owing a penalty of $447. That’s one percent of $44,700–their income minus the minimum filing threshold for a couple, which is $15,300 ($10,000 for individuals).”
For those getting insurance from the exchanges for the first time, Pickering predicted there will be a learning curve on the tax filing, but “as this becomes part of the normal tax filing, people will be able to plan and adapt accordingly.”
Until then, to help taxpayers make sense of what they’re supposed to do with those 1095A forms they’re getting from health exchanges (note: don’t shuffle those to the bottom of your mail pile), H & R Block is holding a free ACA Q&A day on Jan. 8.
And for those who don’t comply with the individual mandate and decide not to buy compliant health insurance in 2015, the penalties will go up for next year’s tax filing. That one percent of household income doubles, to a two-percent penalty, though it will again be capped at the national average premium for a bronze health care plan. And the alternate, $95 per uninsured person per household goes up to $325 per person (half that for children under 18). The maximum penalty under that scenario is $975. The Tax Policy Center has a calculator to help taxpayers calculate their penalties.
krychick says:
“For your State taxes. You’ll still owe the fine on your Federal taxes.”
From: http://www.truthandaction.org/obamacare-2015-serious-tax-penalty-hikes-headed-way/comment-page-2/#comment-924596
#Standandfight
p**s on obama and who ever.willnotcomply
Hopefully it will be GONE this yr….as it is C**P !!!
Syndicated News
Several Top ISIS Leaders Have Been Killed in Iraq, U.S. Says
By Julian E. Barnes
Wall Street Journal
Posted 2014-12-18 19:19 GMT
WASHINGTON — U.S. airstrikes have killed several very senior military leaders of Islamic State forces in Iraq, the Pentagon’s top uniformed officer disclosed Thursday.
Gen. Martin Dempsey, the chairman of the Joint Chiefs of Staff, said in an interview with The Wall Street Journal that three key Islamic State military leaders in Iraq were killed there in recent weeks during operations that are part of an expanding coalition effort ahead of a planned offensive next year.
The strikes in which the Islamic State leaders were killed were designed to hamper the group’s ability to conduct its own attacks, supply its fighters and finance its operations, Gen. Dempsey said.
“It is disruptive to their planning and command and control,” Gen. Dempsey said. “These are high-value targets, senior leadership.”
Islamic State is also known as ISIS or ISIL and by its in Arabic label, Daesh.
Between Dec. 3 and Dec. 9, American military airstrikes killed Abd al Basit, the head of Islamic State’s military operations in Iraq, and Haji Mutazz, a key deputy to Abu Bakr al-Baghdadi, the leader of the group, officials said.
In late November, another strike killed a midlevel commander, Radwin Talib, Islamic State’s wali, or governor, in Mosul, Iraq, officials said.
Other defense officials said that in addition to the most recent strikes, the U.S. has killed a number of senior and midlevel Islamic State commanders, and believe those operations are beginning to significantly weaken the group’s leadership structure in Iraq.
SO ARE YOU ONE OF THE ONE’S WHO DOESN’T HAVE INSURANCE WELL GET READY FOR A $325 PER PERSON IT IS UNCONSTITUTIONAL TO BE FINED OR TO BE MADE TO HAVE INSURANCE STAND UP AND FIGHT SIGN MY PETITION TO IMPEACH OBAMA http://www.thepetitionsite.com/860/901/608/demand-the-impeachment-of-the-president-of-the-united-states/