Wednesday, April 03, 2013

The ObozoCare Box of Chocolates

One of the fillings is Obozo's Excremental Surprise!

...President Barack Obama’s new health care law will offer subsidies to help people buy private health insurance on state-based exchanges, if they don’t already get coverage through their employers. The subsidies are based on income. The lower your income, the bigger the subsidy.

But the government doesn’t know how much money you’re going to make next year. And when you apply for the subsidy, this fall, it won’t even know how much you’re making this year. So, unless you tell the government otherwise, it will rely on the best information it has: your 2012 tax return, filed this spring....AP, quoted at RedState

Of course, there's a little catch:

...What happens if you or your spouse gets a raise and your family income goes up in 2014? You could end up with a bigger subsidy than you are entitled to. If that happens, the law says you have to pay back at least part of the money when you file your tax return in the spring of 2015...


This has serious implications for people who work on commission or whose spouse goes back to work or gets a better job. 

It also works the other way:  if you lose your job, or if your earnings go south, you'll be paying a higher rate than you have to--all year long.


Jim said...

So, unless you tell the government otherwise

Why wouldn't an applicant for the credit tell the government otherwise. A taxpayer can apply for the credit and get the credit up front based on their own estimate of household income. At year end, the taxpayer reports actual income and the credit is adjusted up or down accordingly.

Have you ever paid quarterly estimated taxes? Do you fill in your W-4s based on your best estimate of household income and deductions in order to withhold taxes for the year? Do you pay more or less when you you file your return?

I don't think this is a totally new concept, is it?

LaShawnte said...
This comment has been removed by a blog administrator.
LaShawnte said...

Suck my nigger dick Jim