Millions of Americans May Owe IRS Funds Under Healthcare Law
Tax Filing Season More Complicated Due to ACA
(Washington, D.C.) – As Americans prepare to file tax returns for the 2014 year, they should prepare for a process made more confusing by newly-implemented provisions of the Affordable Care Act (ACA), also known as Obamacare. The tax firm H&R Block estimates that as many as half of the people who have received taxpayer help to purchase insurance have received the wrong credit, and may be required to refund money to the Internal Revenue Service (IRS). One expert estimates that the average tax credit for purchasing insurance was more than $200 too high in the first year. In enforcing the new legal mandate that almost all Americans purchase federally-approved insurance, the IRS will be required to impose penalties and collect refunds where consumers improperly benefited from the health law’s complex and confusing provisions. With a concentrated effort by the White House to enroll Latinos, many Hispanics will feel the impact this tax season as many remain uninformed about the law’s tax implications.
Jorge Lima, Policy Director of The LIBRE Initiative, released the following statement:
“In addition to the higher premiums, higher deductibles, and limited choice of doctors brought about by the new health care law, many will be surprised to learn they owe money to the IRS as part of complying with these new mandates. We can do better.
Supporters of the law said it would expand coverage, reduce costs, increase choice, and preserve the best elements of the current system. Congress and state governments will have the opportunity to consider pro-patient reforms that deliver on these promises. Hopefully those who have promised to ‘fix’ the president’s law will work to improve the system, rather than standing in the way.”