Obamacare Tax Day Nightmare: ‘I Owe Thousands’

Obamacare: A Tax Shock For Millions, Hundreds Of Thousands Receive ‘Incorrect Data’

 “Half of the households that received federal subsidies to help pay for their health insurance in 2014 will have to repay some money back to the government when they file their tax returns” (“Nasty Tax Surprise For Obamacare Customers,” CNBC, 3/24/15)

• “The average repayment owed by those people will be $794, the Kaiser Family Foundation study found.” (“Nasty Tax Surprise For Obamacare Customers,” CNBC, 3/24/15)

“According to H&R Block, as many as 3.4 million people who received subsidies for health insurance will have reduced tax refunds this year due to underestimating their income.” (“Will Obamacare Ruin Your Tax Refund?” USA Today, 2/1/15)

“Last month, it was revealed that 820,000 flawed 1095-A forms had been sent out to customers of HealthCare.gov, which contained incorrect information about the prices of so-called "benchmark" health plans. Those benchmark places are are used to determine the value of tax credits that low- and moderate- income Obamacare customers to help pay for their own health plans.” (“IRS Gives Break To Obamacare Filers Who Got Wrong Info,” CNBC, 3/20/15)

• “Another 100,000 1095-A forms that contained incorrect data were sent to customers of Covered California, the state-run Obamacare exchange.” (“IRS Gives Break To Obamacare Filers Who Got Wrong Info,” CNBC, 3/20/15)

Americans ‘Shocked’ & ‘Blindsided,’ ‘They’re Telling Me I Owe Thousands Of Dollars’

“‘All of those people reacted with “genuine surprise” when they were told they owed a repayment…’” (“Obamacare Sticks Some Enrollees With Unexpected Bill,” CNBC, 4/10/15)

‘Mike Highsmith… has to pay back every cent of the $6,624 in federal subsidies’ “‘I wasn't very happy,’ said Mike Highsmith, 61, a retired US Airways flight attendant who learned after having his taxes done that he has to pay back every cent of the $6,624 in federal subsidies that helped pay the lion's share of his HealthCare.gov-purchased plan. ‘This shocked me ... I didn't know this was coming.’” (“Obamacare Sticks Some Enrollees With Unexpected Bill,” CNBC, 4/10/15)

• “…the ‘absolutely worst-case scenario’ is someone in Highsmith's position, who ends up earning more than 400 percent of the poverty level after receiving subsidies during the year… [Bradley] Heim noted that people who go over the 400 percent poverty threshold by even a dollar can end up owing several thousands of dollars back in subsidies. ‘All those subsidies go to zero once you hit 400 percent of poverty,’ Heim said. ‘You can go from a $10,000 [subsidy] to be eligible for nothing.’” (“Obamacare Sticks Some Enrollees With Unexpected Bill,” CNBC, 4/10/15)

‘Dave Benardino …is now looking at a tax bill of $1,800.  “All of a sudden, they’re telling me I owe thousands of dollars in subsidies. I never got subsidies”’ “Consider Casale’s client Dave Benardino of Las Vegas…It’s not clear whether the exchange or the insurer ever received the $3,700, Casale said, but Benardino is now looking at a tax bill of $1,800. ‘All of a sudden, they’re telling me I owe thousands of dollars in subsidies. I never got subsidies,’ he said.” (“Past State Obamacare Sign-Up Glitches Now Haunt Nevadans At Tax Time,” Las Vegas Review Journal, 4/7/15)

“Karen … [had] to request an IRS filing extension after her premium tax-credit statement, or 1095-A form, showed mistakes. That’s a problem because she needs her $1,000 refund to ‘juggle bills and get caught up.’” “Karen, a Southern Nevadan who asked that we use only her first name, said representatives in Xerox’s Henderson call center advised her to request an IRS filing extension after her premium tax-credit statement, or 1095-A form, showed mistakes. That’s a problem because she needs her $1,000 refund to ‘juggle bills and get caught up.’” (“Past State Obamacare Sign-Up Glitches Now Haunt Nevadans At Tax Time,” Las Vegas Review Journal, 4/7/15)

‘Janice Riddle got a nasty surprise when she filled out her tax return this year. … she has to pay back the entire subsidy, which is forcing her to dip into her savings’ “Janice Riddle got a nasty surprise when she filled out her tax return this year. The Los Angeles resident had applied for Obamacare in late 2013, when she was unemployed. She qualified for a hefty subsidy of $470 a month, leaving her with a monthly premium of $1 for the cheapest plan available. Riddle landed a job in early 2014 at a life insurance agency, but since her new employer didn't offer health benefits, she kept her Obamacare plan. However, she didn't update her income with the California exchange, which she acknowledges was her mistake. Now, she has to pay back the entire subsidy, which is forcing her to dip into her savings.” (“I Have To Pay Back My Obamacare Subsidy,” CNN Money, 2/13/15)

• ‘I was blindsided… I'm in shock’ “‘I was blindsided that the subsidy has to be paid back,’ said Riddle, adding she didn't even use the coverage, which she had until she qualified for Medicare in October. ‘I'm in shock...but I have no choice. Do I want to argue with the IRS or the Obama administration?’” (“I Have To Pay Back My Obamacare Subsidy,” CNN Money, 2/13/15)

‘Erica Cherington… has to pay back $600 of her subsidy’ “Erica Cherington, 32, was ‘very happy’ to enroll in Obamacare last year so she could address some health issues. She only had to pay $89 a month for a Horizon Blue Cross Blue Shield plan, thanks to a $284 monthly subsidy. She let herself be automatically re-enrolled for 2015. During 2014, however, the Newark, N.J., resident landed a new job with a higher salary. Now, she has to pay back $600 of her subsidy.” (“I Have To Pay Back My Obamacare Subsidy,” CNN Money, 2/13/15)

• “Cherington is now considering dropping her coverage and paying the penalty instead. ‘It's not really affordable,’ she said of her new premium. ‘I don't know if I'll be able to keep it.’” (“I Have To Pay Back My Obamacare Subsidy,” CNN Money, 2/13/15)