IRS will retroactively bill you for your Obamacare subsidies if your income rises

Get this.

Say you reported to the Obamacare exchange last month that your recent income is at a rate of about $50,000 per year. For a family of four that signs up just the two adults, Obamacare subsidies would be about $500 a month or $6K for the year.

What happens if your income rises for some reason and you close the year with $80,000 in income? Well, then the IRS on your 2014 tax return will hit you with – what some call – an Obamacare Subsidy Chargeback to collect most of the subsidy that they paid on your behalf. At $80K your subsidy is substantially less than had you actually closed the year at $50K in total income.

So not only do you pay more income tax at your elevated level of income, you will also get hit with an Obamacare Subsidy Chargeback on your tax bill which will amount to thousands of dollars.



This regulation essentially means that people may choose not to earn more income or may cancel their plans mid-year once they learn about it.

A friend of mine out of New York and his wife signed up last week for a Bronze Plan with premiums of almost $8,000 per year (a terrible plan that leaves them with $12,700 in annual deductibles and copays), but due to the subsidy, their premiums are costing them only 1/4 of the stated amount; until of course their income starts to rise.

During signup, my friend was informed about this Obamacare Subsidy Chargeback and was asked to acknowledge this on the record in order to move forward with the application. Today I read exactly the same thing at BusinessWeek but with an added point:

if your income changes substantially during the year—either up or down—you should notify the exchange you’re participating in and ask for an adjustment of your subsidy. That way you’ll avoid a nasty surprise come tax time.

So folks this mess is real!

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yesIDeeClaire
Guest
yesIDeeClaire

Since a nation’s advance mostly results from the efforts of its affluent citizens, assaults upon those citizens will reduce progress.

ScarlettNY
Guest
ScarlettNY

Many good Americans are going to wind up losing everything because of this law. I see jail time for tax evasion becoming a reality for some.

bbwh
Guest
bbwh

Penalizing hard workers and success.
The Democrat Way.

bbwh
Guest
bbwh

There will have to be 330 million people running the IRS Police to keep up with this mess.

sleepergirl
Guest
sleepergirl

The feds never come up with any incentives for Americans to work hard, earn more money. IRS is right there with their hand out to collect tax or penalize you with a “Subsidy Chargeback.”

Laurel
Member
Laurel

Big Brother is watching.

john
Guest
john

Obamacare is tormenting us with endless barrage of phone calls and letters (money is no object), to justify the employment of millions of ACORN and other DNC members; all of them have our personal info, and all are very honest and had criminal background check….right? No. Far, far left.
Move over, Cuba

Suzyqpie
Guest
Suzyqpie

0bamaCare navigator gallimaufry is nothing but government largesse out to the democrat base.

SPELL9
Guest
SPELL9

The “HONOR” system. There will be Blood.

Nancy
Guest
Nancy

You people make me feel sad. All this fuss about helping someone,
What kind of people would do this, and why?

SPELL9
Guest
SPELL9

Vile Democrats did this. They ALL voted to give OUR healthcare away.

timerunnersc
Guest
timerunnersc

it’s apparent Obamacare is not the only Government department that has a great dependence on death panels for it’s existence. These departments have completed their infestation, their disease, into the minds, body’s and souls of the low information voters, now the these panels want the rest of you.
Isn’t the democrat party a beautiful thing? Pleasant dreams.
https://www.youtube.com/watch?v=KpNdzSxXw-I

Conservator1
Guest
Conservator1

Great horror flick that’s very appropriate – we don’t have a choice under Bammy-Care. But like the movie, Americans fight back and are doing so albeit it’s a secret thanks to a MSM that has already had their minds and bodies SNATCHED.

timerunnersc
Guest
timerunnersc

The Choice is ours as Americans who support Freedom, Liberty and the US Constitution.
We surround them but through their dictatorial laughter aim at American citizens whom they think they have enslaved. But they, the Democrat and RINO tyrants, are in for a rude awakening.

Gene White
Guest
Gene White

One of the best science fiction movies of all time. It might be good to remember, that it came right down to the wire, before the good guys won. There may be a comparison there.

timerunnersc
Guest
timerunnersc

War between good and evil.

Gene White
Guest
Gene White

I was thinking of Obama, but yeah, I guess good and evil will do.

Jim
Guest
Jim

This makes sense to me: if someone asks for a handout based on their low income, but they end up getting a better job that year with better pay, why should they still get a handout based on their prior low income? Pay it back.

Marbran
Guest
Marbran

Jim, while the logic is sound (I don’t support any subsidies, especially when they aren’t “needed”), the point being made here is that the IRS and the ACA are so bungled that working Americans will be unable to know their true financial status at any given time. People will get subsidies that don’t need them, then they’ll be on the hook to pay back any extra they got which will then invariably lead to defaults and penalties because they can’t pay the money back. It is a vicious construct that will have every American wondering if they are in violation of some obscure section of the ACA and Tax Code. It is unfair.

This whole “crisis” could have been avoided if the Fed had simply lifted the restrictions on selling insurance across State lines. Of course, allowing that would have removed much of the power from our “leaders” in DC.

Nancy
Guest
Nancy

All I have to say to you is lets just see. more and more people are liking the ACA because they finally see.There will be more, and more because truly the law is good. It helped me, and many others.

Marbran
Guest
Marbran

Nancy, you said something similar back in 2010:

“We have to pass the bill so that you can find out what’s in it.”

Sitting around waiting to see how it all works out is a fool’s move. The numbers are clear to anyone who takes the time to look at them: the ACA is a ponzi scheme that is destined to fail, but not before it allows our entire health care system to be destroyed. You may think you got a good deal, but that good deal is coming at the expense of someone else. That is the part that has so many people angry. And if you think a government run health program will be any better than almost any other government program you are never going to give up your dependency on others.

Nancy
Guest
Nancy

I agree, just make sure they have the chance to do so.

Gene White
Guest
Gene White

We are a Constitutional Republic. It is a form of government. It has been said, that this particular form of government only works, up to a certain number of people. The reason is, once the country reaches a population where there are more takers looking for the free stuff, than there are honest workers willing to provide them, the whole thing falls apart.

I would venture, that The United States of America has about reached that point.

Suzyqpie
Guest
Suzyqpie

The WorkerSaver people were in delicate balance with the LooterPlunderer people until the people that we elected to represent us, US, allowed Mexico, et al, to export a portion of their poor people to us, US. Pres 0bama calls them the Dreamers, they are a nightmare to the American taxpayers.

Nancy
Guest
Nancy

Once you start working, you pay tax. I worked and had taxes taken out, I worked even before I had to get welfare, for quite awhile so I paid for my help. This is so so sad, you people are down on people who need help. Why? God said to take care of the poor and widows. We all answer to him even if you do not believe, because it has no effect on what is true, it is so whether you believe or not.

Suzyqpie
Guest
Suzyqpie

I am all for helping Americans. Government collects taxes, some of that tax revenue is for programs to help Americans. Every tax dollar that is expended helping other than Americans is one less dollar available to help Americans. American taxpayers should not be expected to provide for anyone from anywhere who successfully found their way to our shores. God is busy, leave God out of stuff that we are supposed to take care of ourselves.

nochickenlady
Guest
nochickenlady

Actually, the Republic works in so much as the people are educated and vested in the government. Those who do not pay, should not vote. That’s how it was to begin with.

Gene White
Guest
Gene White

And there lies the problem. There is simply no way, at this point, to get back to that sensible position.

Nancy
Guest
Nancy

I worked most of my adult life. Getting my degree, I even worked then for a time until my last quarter. Still, I had to be on aid for dependent children, as it was known then. As soon as I was able to I got off. The people who give you stuff, and it is not free, That is how I know most of you people do not even know what is true and what is not. You pay with TIME, your time, treated slightly better than a herd of animals. Once again you people do not know what you are talking about. I am also going to ask you What Kind of People are you to not want ordinary help to be given to people in need. Oh well I will leave it to God, and he does not like ugly or lies, or keeping your head in the… Read more »

nibblesyble
Guest
nibblesyble

God wants us to give to people of our own free will, he does not want money stripped from us and given to the Gov’t to dole out as they see fit. I give because I want to and I know that is what He wants me to do. Saying someone is not a good Christian because they balk at paying over half their income in taxes, both federal and local and then watched the Gov’t waste it, is laughable and a little sad. Do your homework Nancy and perhaps stop looking at things emotionally but with logic.

Kevin
Guest
Kevin

If your state didn’t setup an exchange its possible you’re not liable.

Come on halbig!

Gene White
Guest
Gene White

The Affordable Care Act is the signature program that represents the thoughts of this President. Wealth redistribution. You and I both know, that the poor in this country, and that includes the illegal aliens our Healthcare system is supporting, even now, are not going to pay a dime for healthcare. You and I are going to pay for their healthcare. That is how this thing is designed. That is how it works. That is the only way it will work. This plan depends on the stupidity of most Americans, who can afford their own healthcare, to pay higher premiums, in order to pay for the rest of the population, who can’t afford it. Folks, I just gave you the best definition of Communism out there. First of all, it is unconstitutional to use the power of the Federal Government, and the power of a Federal Government Agency, to force people… Read more »

NYGino
Editor
NYGino

Joe McCarthy is vindicated and he’s laughing his a$$ off.

Nancy
Guest
Nancy

Please go somewhere and get your facts straight if you can, or is your mind given over to wrong thinking, because if that is the case you will never see good in what is good.

nibblesyble
Guest
nibblesyble

er-Nancy I am afraid you are the one with the facts not straight. Gene is right, and calling anything the Gov’t does is good is scary.

Reckless Cognition
Guest
Reckless Cognition

It’s actually based on the idea that young, healthy people that don’t have insurance now are brought into the marketplace. They are less risky and are used to offset the high costs of the older less healthy of our flock.

badbadlibs
Guest
badbadlibs

As per usual with Marxist ideology, they never intend to help anyone but themselves stay in power.
The framers of this nation would not recognize anything about this country. First words out of Franklin’s mouth would be, “you couldn’t keep the republic very long”.
What a pity so many men and women died to make this a free nation, just to turn it over to charlatans, posing as democrats.

Gene White
Guest
Gene White

Never in the History of this nation, has your Federal Government had so much control over your life. Never. And this is just the beginning. Once they get you to accept this pile of cow dung, they will force you to accept anything they come up with. That’s why this was so important for them, to get this thing passed.

That’s why it is so important to us, to get this thing repealed.

imatellau
Guest
imatellau

Yes. Repeal! Have you heard any republican talking repeal?

Gene White
Guest
Gene White

Yes, I have. His name is Ted Cruz.

imatellau
Guest
imatellau

True.

Nancy
Guest
Nancy

YUCK! ! !

Nukeman60
Member
Nukeman60

What bothers me most is the idea that the government comes up with a program (a very expensive program) that is supposed to help people that can’t afford that program, raises the cost of said program on everyone in order to pay for the program for everyone, and then gives subsidies to people that can’t afford the new costs (that would be all of us). It’s no different than raising the minimum wage to pay for the cost of products, and then wanting the minimum wage to be raised again because the result of raising that minimum wage was to increase the cost of products. Get the government out of my pocketbook and maybe, just maybe we can stabilize this downward spiral. We need the costs lowered, not the subsidies (ie, entitlements) raised. As with anything the government does, this is a self inflicted wound (which ObamaCare won’t cover unless… Read more »

badbadlibs
Guest
badbadlibs

This whole dang thing has been nothing but a bait and switch from the start.
The media just will not do it’s job and expose what is going on and too many people are staying uninformed.

Nukeman60
Member
Nukeman60

Unfortunately, I’d have to say that the Lame Stream Media IS doing their job. Their job being to keep the low-information voters in the dark.

Now, what they actually get out of it is nowhere near what they think they are going to get out of it.

Nancy
Guest
Nancy

That would be nice but if the Gov. was out of it you people would help no one but yourselves.

Nukeman60
Member
Nukeman60

“…you people…” — RACIST!!!

And YOU people would have no one to suck the life out of.

ObamaCare is your answer??? When everyone is taking and there is no one left to be taken from, where will you turn? I know where I will turn, because I already have. I’m self-sufficient.

You think that there is no charity without government intervention? Maybe for the Democrats. Look at the charitable giving of people like Obama, Biden, etc. compared to the charitable giving of the conservative right and then come back to whine.

Yeah, try spinning some of that BS anywhere but here. Go talk to “your people”.

sjmom
Member
sjmom

November can’t come soon enough. We need to neuter Obama for the next two years and then get a president who will repeal this travesty.

Nukeman60
Member
Nukeman60

Well, ObamaCare forces us to pay for abortions. Does it also force us to pay for neutering, ’cause if it doesn’t I will pay out of my own pocket for this one. Although, I think it’s unnecessary for two reasons. One, Moochelle isn’t going near him lately and two, rumor has it he favors a different breed.

I don’t know…

Nancy
Guest
Nancy

What are YOU talking about, Ah… did you just call the first lady a DOG, You are a sad case. I wonder if that could be a threat against Mrs. Obama ?

Nukeman60
Member
Nukeman60

Are YOU threatening the first lady. You better be careful. The NSA is listening to you. Ahahaha.

What a maroon. You thought I said Michelle is a dog because Barry is gay and she won’t go near him. You’re just too funny. I like your comments. Keep typing. You’re splitting my sides with your ignorance.

Nancy
Guest
Nancy

Wish I was a betting person, I would bet you. This is why. The GOP supporters are fewer than the ones the GOP has taken a lot of help from. We do not want to give them any more leverage, so we will be voting this Nov. The GOP thought they were going to win the 2012 election, of course they did not. I even had one friend that thought the big money people would win. I knew they would not because people are Not stupid or blind, it is still the same. We are going to vote in Nov. Republicans majority will be no more. We will win.

Nukeman60
Member
Nukeman60

If one has to estimate their income to receive the subsidies and then that income turns out to be different, then of course the amount of the subsidy would change, one way or the other.

What bothers me, and I wouldn’t put it past this administration to do it, is if they retroactively went back to the previous years’ subsidies and adjusted them if subsequent years incomes rose, much like a ’12 months – same as cash’ means that if you didn’t pay the bill off in 12 months, you owed interest for the entire past year.

Nah, they wouldn’t do that, now would they. Would they?…

badbadlibs
Guest
badbadlibs

That was a rhetorical question, right?

Nukeman60
Member
Nukeman60

Heh. As all my questions are, for we know the answer before we ask the question these days.

Nancy
Guest
Nancy

We are dems. only republicans do that. Blew that one back on you (smile). Can you take it???

Nukeman60
Member
Nukeman60

What’s to take? You just make it up as you go. The facts aren’t really very important to you, are they?

Btw, you’re not a very good (or intelligent) troll. Are you a dog? (Hmmm, I wonder if that question is a threat?)

American Duckie
Member
American Duckie

This mess is very real for the people who take it. One nice thing I guess about having no money, maybe I’ll slip through the cracks and they won’t care that I’m not signing up for it.
Fine me all they want. Even if we earned more, I refuse to sign up for this crap.

Gene White
Guest
Gene White

Duckie, you point out a very simple solution for getting rid of Obamacare, once and for all. The weakness in the system, is that it depends on people signing up. If no one signs up, it fails. Its really that simple.

Nukeman60
Member
Nukeman60

I think we are seeing that, as much as they try to claim there are upwards of 6 million signed. In reality, there are far fewer than make it sustainable.

Gene White
Guest
Gene White

They are in “panic” mode right now.

Nancy
Guest
Nancy

No we are not. We are letting the Gop use that route. Please go get informed at an unbiased site you need to know the truth.

Nukeman60
Member
Nukeman60

First smart thing you’ve said yet. We all need to know the truth, but low-information voters, such as yourself, seem to be trying, and failing, to drag that down.

Not for long, though, in your case, as you will soon learn the more you hang out on “this” unbiased site. The only bias we have is against stupidity.

Nancy
Guest
Nancy

Please if you have an argument do not lie it just makes you bad and unknowing. Go to a non-bias source to find the truth. It is not the White-House with the numbers

Nukeman60
Member
Nukeman60

Refute the argument with facts (other than “the White House said so”). Fewer than 1 million previously uninsured people have actually paid for insurance through ObamaCare and over 6 million have lost theirs (due to the new ObamaCare restrictions).

What happened to the 30 million Obama said were going to be covered?

What happened to no one losing their insurance, like Barry said?

What happened to no one having to pay more, like Bozo Barry said?

Bring your facts, ’cause you don’t sound very intelligent, let alone informed. You can’t always go through life swooning at a fake “community organizer” and survive.

And stop listening to those “unbiased” people over at MSNBC and MediaMatters. Their following is dwindling faster than your brain cells.

American Duckie
Member
American Duckie

Simple, yet too many people seem to be quick to roll and say “well the government said we have to, so I guess we have to.”
I didn’t come to that United States. I came to a United States where people told the government what to do, not the other way around.
I know it’s been about 200 years since America was like that, but there’s no rule that says we can’t be again.

Nancy
Guest
Nancy

To late even as of 5 days ago.

Nukeman60
Member
Nukeman60

One has to love the fact that Obama declares 7 million signups – on April Fool’s Day.

Surprise!

jonodough
Guest
jonodough

I stand with you. I am a free american. I refuse to spend my hard earned money on Obamas garbage. I refuse to comply with anything these lawless criminal thieves try to force upon me. Jail? Fines? Who cares. If this continues the country is lost anyway. I will not contribute to that.

Nancy
Guest
Nancy

I have very little to say here because there is no cure for stupid, as Sally Fields says in the movie Forrest Gump. Stupid is as stupid does.

Nukeman60
Member
Nukeman60

You can’t say anything because you haven’t found the cure for stupid yet???

Brilliant, by far. You will find that the longer you stay here, the less stupid you become. That’s good, and you didn’t even have to ask for a handout to achieve that (a change, but one for the better)

Nancy
Guest
Nancy

I have no money because a car accident suspended my working at this time. I have now extended Medicaid. Are you in one of the sensible states that has extended medicaid? If not how can you like what is happening?

American Duckie
Member
American Duckie

I don’t like what’s happening. I hate that we are being forced into/onto governement ‘care’ at the expense of others. I’ve had healthcare insurance and not had insurance depending on where I’ve worked since living here, and never been denied care at a hospital when I didn’t have it. Worked out payment plans with the doctors who were more than willing as long as they knew I was serious about paying them back. Which I did within 8 months. Interesting that they charged a lot less because I paid cash instead of going through bureaucracy of insurance/government.

Nukeman60
Member
Nukeman60

You know, it would be great if EVERYBODY quit working and we all went on extended Medicaid. The government pays for it, so none of us would have to worry. I can’t believe they haven’t thought of that yet. Maybe you could tell them. This sounds like a breakthrough in the national debt.

57thunderbird
Guest
57thunderbird

These things that we are seeing,are only the tip of the iceberg.

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