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Half of ObamaCare Enrollees Taking Hit on Tax Returns

Early filers discovering that the subsidies they received were too high
By John Johnson,  Newser Staff
Posted Feb 25, 2015 3:24 PM CST
Half of ObamaCare Enrollees Taking Hit on Tax Returns
The HealthCare.gov website.   (AP Photo/Don Ryan, File)

(Newser) – People who got a subsidy from ObamaCare to help pay for their health insurance are getting a not-so-pleasant surprise on their taxes: H&R Block reports that 52% of people who got subsidies have to pay back a chunk of that money to the government. The average payback is $530, equating to a 17% drop in returns, reports the Hill. The main reason for the payback? Filers' 2014 income came in higher than expected, and thus the subsidies they received were too high.

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“It’s costing taxpayers a large percentage of their refund—a refund many of them count on to pay household expenses,” say H&R Block VP Mark Ciaramitaro. The figures are based on only the first six weeks of the filing season and could change. On the upside, about 38% of ObamaCare filers found out they were getting an average credit of $366 because their subsidies were too low, reports Forbes. So far, the average penalty for those without health insurance is $172, and Forbes thinks many filers who learn of the penalty will take advantage of a new special enrollment period (from March 15 to April 30) put into place for just that reason. (Read more ObamaCare stories.)

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