Affordable Care Act Potential for Tax Surprise!

According to this  New Year’s Day article in the Wall Street Journal, this year will be very interesting and chaotic for many consumers.

As you know, the 2015 Tax Season could be the most confusing in history for those who have been forced to purchase Health Insurance either directly or through Covered California.

Unfortunately, in addition to experiencing a lack of doctors through their chosen plan in 2014, consumers may now face the possibility of an increased tax bill if they received the Advanced Premium Tax Credit (which was misnomered  as a subsidy on premium statements from the carriers) or if they went without coverage all together.

A subsidy by definition is a sum of money granted by the government so that the price of a commodity or service may remain low or competitive.

A Tax Credit is subject to income guidelines, meaning it may… or may not… be given and since this one is taken in advance, it is recoverable.

The truth will come out between now and April 15th!

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