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Health care tax credits become tax woes
The Tennessean [Nashville TN], by Tom Wilemon

Original Article

Posted By:JoniTx, 7/21/2014 11:14:51 AM

If this year´s real-estate market is a good one for Larry Lyons, the federal subsidy that helped him buy health insurance may turn into a huge bill at income tax time. Four months after the Good­lettsville real-estate agent chose a health insurance plan on healthcare.gov, he´s perplexed by a letter from the U.S. Department of Health and Human Services asking him to prove his income and his children´s citizenship. "I have been filing tax returns for years with the IRS," Lyons said. "Now, I am going to have to send citizenship documentation." And he´s baffled by the demand for upfront proof

      


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Reply 1 - Posted by: Northcross, 7/21/2014 11:30:31 AM     (No. 9933803)

Larry, Larry, Larry. Did you really think that getting health insurance from a bloated bureaucracy run by Democrats was going to be simple and straightforward? I thought you were smarter than that.

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Reply 2 - Posted by: Ribicon, 7/21/2014 11:46:35 AM     (No. 9933826)

FTA: "As many as 1 in 5 of the people in the top half of the tax credit range might actually end up having income that puts them out of the tax credit range, which means whopping bills at tax time," Brandes said. "We´re talking about millions of people here."

From each according to his abilities, to each according to his needs. Celebrate.

FTA: "Lyons said it´s hard to be accurate when estimating income based on unknown sales. ´If I have a great end of the year and I make more than I expected to, what kind of fines or charges or repayment am I going to have to make on the amount that I estimated?´ he asked."

If insurance was "affordable" (and Barrycare does the opposite), subsidies would not come into play at all. The pitfalls of estimated income are great for tax accountants, though, and for hiking costs for small businesses.

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Reply 3 - Posted by: strike3, 7/21/2014 11:53:58 AM     (No. 9933835)

It´s not "upfront proof" it´s just a validation of what you wrote on your zippycare application, since so many people decided that it was okay to lie. Given that zippy lies every day of the week, it´s okay, right? It´s also okay to screw the taxpayer since that is also a generally accepted practice of the regime.

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Reply 4 - Posted by: jalo1951, 7/21/2014 12:23:20 PM     (No. 9933878)

One of my nephews was unemployed in Oct. of last year when he signed up for obamacare (he was a widower with a small child). His policy cost practically nothing. In April of this year he got a very good job making over $100,000 a year. He contacted obamacare and asked to drop his policy. They wouldn´t let him. So he asked if they would at least charge him the "new" rate because of his new job. They said no. They will let him settle up when he files his taxes. This stinks and I have a feeling a lot of people are going to be shocked come tax time. I told him not to sign up.

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Reply 5 - Posted by: civilservant, 7/21/2014 1:07:58 PM     (No. 9933959)

Larry, I have an EASY fix for ya´......simply don´t work. Get on Welfare, get you some WIC, some EBT $$, maybe an Obamaphone and then you don´t have to worry about the tax bill!!!!

Hey, you can even write some nice cowboy poetry.......

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Reply 6 - Posted by: Nevadadad46, 7/21/2014 1:48:16 PM     (No. 9934016)

ASwith almost everything the Democrats have ever foisted upon the American people, the incentive to fail, to be less than you can be, is automatically built in.

If you applied to Øbamacare and you get a raise, your business expands, your income grows, you face extensive and debilitating governmental penalties. The message is, become filthy rich and give us half or never try to succeed. A family on minimal welfare income is far better off than any working family trying to make good. America has become a land of losers and beggars.

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Reply 7 - Posted by: NorthernDog, 7/21/2014 2:05:29 PM     (No. 9934033)

I doubt that many people in that income range are accustomed to estimating their tax liability as the year goes along. Now they´ll be hit with not only a huge tax bill for 2014, but a sharp reduction in the tax credit for 2015.

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Reply 8 - Posted by: ColonialAmerican1623, 7/21/2014 3:34:30 PM     (No. 9934147)

What was that car commercial that sang
How Do You Like Me Now ?

Some legacy dude.

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Reply 9 - Posted by: Lucky4, 7/21/2014 3:36:44 PM     (No. 9934151)

I will never go near that government plan. You cannot trust them. They will screw you in so many ways and look at all the people who are now trapped in the system and cannot get out. It is scary to me.

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Reply 10 - Posted by: ktwo, 7/21/2014 5:23:03 PM     (No. 9934272)

It is a complicated mess for Larry. #1 nails it.

But there is no way out for the little guy. So provide the proof of citizenship for the children and insist his income for 2014 should be the same as for 2013; that should quiet HHS for a while.

To cover the anticipated liability he should separately increase his quarterly estimated tax payments; the IRS won´t notice or care. (Notice the loophole, the IRS doesn´t ask you to estimate your income, it just asks you to send in enough money.)

The US is headed for single-payer. But worse things will happen before we get there.



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