Experts are projecting that perhaps as many as 2.3 million households “that received tax credits to help pay for their health insurance under Obamacare will lose all or a portion of their expected 2014 tax refunds.”
If their actual 2014 income ends up higher than what they estimated it would be when applying for Obamacare, they’ll be taxed on the difference. In essence, they’ll have to make up for tax credits they may have received in error.
The Affordable Healthcare Act, known for its vague and ever-changing details, is sure to surprise many workers who underestimated their income or earned a larger income than estimated when they took Obamacare-related tax credits.
“More than a third of tax credit recipients will owe some money back, and (that) can lead to some pretty hefty repayment liabilities,” said George Brandes, vice president for health care programs at Jackson Hewitt Tax Service.
ObamaCare may yet turn out to be the gift that keeps on taking and taking in the end.