Health Care Reform Subsidies Are Considered a Tax Credit and Taxable Income

The eligible portion probably won't be.

The Ineligible portion Will be. You can bank on it!

Remember you're dealing with the IRS here.

If you bothered to even read the link I provided.... the IRS explicitly states on their website multiple times that the excess received will simply be refunded to the IRS via your taxes at the end of the year.

I think that is the disconnect. Because if you have excess credits they become part of your tax liability (not taxable income). You simply owe it along with the rest of the taxes you owe at the end of the year.

They are very clear about this if you bother to read it.
 
It makes the statement on the BX site false.

You know I'm having second thoughts on this and here's why.

Take a person earning over 400% fpl for 1. They get No help in the form of subsidies and 2. They have to pay for their health premium with After-Tax income.

For someone to get a subsidy and get it Pre-Tax is a huge injustice to those folks over 400% and then to add insult to injury the people under 250% fpl get Cost-Sharing for free on their plans. Oh and if they under estimate their income they don't have to pay back anything for cost-sharing.

Yeah....This law is JACKED UP!

I say tax it ALL and Claw it ALL Back! Only Fair.
 
You know I'm having second thoughts on this and here's why.

Take a person earning over 400% fpl for 1. They get No help in the form of subsidies and 2. They have to pay for their health premium with After-Tax income.

For someone to get a subsidy and get it Pre-Tax is a huge injustice to those folks over 400% and then to add insult to injury the people under 250% fpl get Cost-Sharing for free on their plans. Oh and if they under estimate their income they don't have to pay back anything for cost-sharing.

Yeah....This law is JACKED UP!

I say tax it ALL and Claw it ALL Back! Only Fair.

Bingo. It's unfair. Do you imagine the Dems designing this where people getting subsidies have an additional tax burden?
 
Bingo. It's unfair. Do you imagine the Dems designing this where people getting subsidies have an additional tax burden?

No I don't. However what they design and what passes legal muster might be a little different. The lawyers over at the IRS may be telling them that they can't do it that way. We will see, it should be interesting.
 
No I don't. However what they design and what passes legal muster might be a little different. The lawyers over at the IRS may be telling them that they can't do it that way. We will see, it should be interesting.

This bill neutered the IRS. They can't even levy or lien to collect fines.
 
Bingo. It's unfair. Do you imagine the Dems designing this where people getting subsidies have an additional tax burden?

John....In the real world where there is accountability for your actions and what is actually written in the bill is more important than a sound bite I would agree with you. But then there is the reality of how our elected representatives work were a bill gets put together and they do not read it before signing it.
 
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