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| Government |
| Obamacare credits could trigger surprise tax bills - Bloomberg |
| 2013-04-03 |
| WASHINGTON (AyPee) -- 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. Unemployed, no plans to work next year, or the year after? No worries, you get the max. Champ'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. The higher your income, the more likely you are to pay for yours and someone else's. Have a nice day. 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. Your pay raises belong to the masses. Neither you or your spouse actually built or earned them. |
| Posted by:Crailet Omavise1693 |