Big Tax Surprises For Some Obamacare Enrollees
The complicated nature of who qualifies for tax subsidies has Americans -- and small businesses -- struggling to cope with how the health law fits into their tax bills this year, even as many choose to pay a tax penalty instead of carry coverage. Elsewhere, officials are sending out corrected tax forms for Obamacare enrollees.
The New York Times:
Under Health Care Act, Many Tax Filers Are Discovering Costly Complications
This filing season, for the first time, millions of Americans are facing tax implications — and new forms that even seasoned preparers are finding confusing — related to their health insurance status. The changes are not only complicating things for tax filers, but also costing many of them money. Under the Affordable Care Act, people who remained uninsured last year must either pay a penalty with their taxes, one of the most contentious elements of the law, or claim an exemption. ... And people who did get insurance but, like Mr. Ciesielski, underestimated their income for 2014 — the figure on which subsidies are calculated — are being required to pay back part of their subsidy. (Goodnough, 3/21)
The Wall Street Journal:
Many Uninsured Choose Penalty Over Enrollment Offer Under Health Law
A special enrollment period to obtain health insurance for millions of uninsured people who owe a tax penalty under the Affordable Care Act is off to a slow start. The health law requires most Americans to have insurance or pay a fine at tax time. The open enrollment period under the health law ended Feb. 15, but the Obama administration said it would allow people who discover they owe a fine to sign up for coverage through April, at the end of the tax season. Major tax-preparation firms say many customers are paying the penalty and not getting health insurance. (Armour, 3/20)
The Associated Press:
Small Businesses Struggle With Health Care Law
Complying with the health care law is costing small businesses thousands of dollars that they didn't have to spend before the new regulations went into effect. Brad Mete estimates his staffing company, Affinity Resources, will spend $100,000 this year on record-keeping and filing documents with the government. He's hired two extra staffers and is spending more on services from its human resources provider. (Rosenberg, 3/22)
The Associated Press:
Healthcare.gov Sending Out Corrected Forms
The Obama administration said Friday it's making progress trying to correct a tax-form error that affected 820,000 customers of HealthCare.gov. Administration officials said 740,000 corrected forms have gone out to consumers in the federal insurance marketplace, and another 80,000 will be mailed next week. (3/20)