If you are currently receiving a subsidy from the government for your health insurance, you better be aware that any "life changes" that occur during the year - marriage, divorce, increase in income - has to be reported to the IRS. Otherwise, you're liable to get a nasty surprise come tax time.
Politico:
It's a new responsibility for this group - many of whom are just struggling to sign up.The IRS, for its part, must make sure consumers don't get blindsided - or it will face a bunch of angry taxpayers who didn't realize they would owe Uncle Sam money back, tax experts said.
"If I were the IRS, I would be very concerned that I'm going to be viewed as the villain when people have to pay back money the government gave them for health insurance," said Chris Condeluci, who was Senate Finance Committee GOP tax counsel during drafting of the Affordable Care Act.
There is time. Potential "repayments" to the government will not come due until 2015, when recipients file next year's taxes. But the new rule for reporting these life changes begins this January.
(WATCH: Obamacare timeline)
But there might be good news: If a recipient's income were to fall and it wasn't reported, the recipient could get a nice, fat check because he or she would be owed a larger Obamacare tax credit than was received.
Right now, the IRS does explain the issue on its website, but consumers would have to be looking for the information to find it.
(Excerpt) Read more at americanthinker.com ...
