40 Percent Of Households Could Lose Obamacare Subsidies Due To Tax Law Confusion

Matt Vespa
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Posted: Aug 20, 2015 9:28 PM
40 Percent Of Households Could Lose Obamacare Subsidies Due To Tax Law Confusion

Well, this is happening (via AAF):

According to preliminary data released by the Internal Revenue Service (IRS) in a letter to Congress on July 17, 2015, about 40 percent of households that received subsidies in 2014 are currently at risk of losing their subsidy eligibility because of complications with their 2014 tax returns. To date 1.8 million heads of households have not submitted the appropriate Affordable Care Act (ACA) related tax forms to reconcile the $5.5 billion in subsidies paid on behalf of these households.

Brittany La Couture, a lawyer from Georgetown University who specializes in health care policy, wrote that 360,000 taxpayers have filed extensions to get their paperwork in order. They have until October 15. But wait–there are two more groups.

The second bloc of people–760,000–failed to turn in their new Premium Tax Credit form (form 8962), which she says looks similar to a typical 1040 income tax form. La Couture adds that this is an extraneous addition to the already tedious tax filing process. Then, there are the 710,000 people who didn’t file any tax paperwork due to their level of income, which historically might have not been necessary. Yet, with this new law, their subsidies are on the chopping block.

The Affordable Care Act has been riddled with technical glitches and premium hikes that have been documented by Guy. Read more about them herehere, and here. This was a big government health care overhaul. Of course, the laws stemming from it were going to be botched, as are most things that come out of Washington, especially from this administration.