Because it’s too complicated – IRS Waives Penalties for Late Payments Linked to Obamacare – Bloomberg.
The U.S. Internal Revenue Service will waive some penalties for taxpayers who owe taxes because of Obamacare.
The changes, announced Monday in Washington, apply only to people who received subsidized health insurance during 2014. On tax returns, they must reconcile eligibility for the credit with their actual income and pay back some of the subsidy if they received too much.
That can happen if someone got a higher-paying job or a raise during 2014 and didn’t ask the government to alter the subsidy.
The IRS will waive penalties for making that payment late or for failing to pay estimated taxes throughout 2014.
Taxpayers must send in a letter for a penalty waiver. They still must pay the taxes within a year and will owe interest after April 15, the due date for individual tax returns.
ObamaCare fines loom for uninsured | TheHill.
Consumers face a Feb. 15, 2015, deadline to buy insurance, after which those without coverage could be hit with fines of $325 per adult or 2 percent of family income, whichever is higher.
Uninsured people looking to escape the penalties are turning to the exchanges before they close, while insurance companies and tax preparers are seizing on the looming tax hit as a business opportunity.
There is no doubt that There can be little doubt Obamacare is good for the tax preparation business:
Firms are also offering to help current enrollees understand how changes in income can affect their tax credits to buy coverage. In some cases, they can also help the uninsured select health plans.
In promotional materials, H&R Block and Jackson Hewitt Tax Service say they can provide consumers relief, arguing that healthcare reform is making tax planning more difficult.
“The ACA [Affordable Care Act] has changed the landscape of both healthcare and tax,” H&R Block states online, inviting consumers to calculate their mandate penalty or receive a “tax impact analysis” when they become a client.
Jackson Hewitt urges consumers to stop by one of its locations, promising that their employees “work harder to keep up with the latest tax law changes to protect you from possible penalties — not everyone else does.”
There’s no KISS (Keep it Simple Stupid) within a light year of Obamacare.
Say it ain’t so.
Among those flaws are the spike in insurance costs, the impact on the debt (not stripped of the unworkable CLASS Act that was designed to offset Obamacare costs), the shift to part-time work (and, the Los Angeles Times reports, reduction in part-time hours), the slow rate of new job creation and the uncertainty related to employers dumping their own insurance. That doesn’t include the impact Medicaid expansion is having on state budgets, the new tax for upper income taxpayers, the medical device tax (which Senate Democrats want to repeal), the cuts in Medicare advantage and the infringement on religious faith via the HHS mandate on birth control and abortion-inducing drugs.
Nothing to see here, move along.
Unravel Obamacare and You Get a Train Wreck.
Back to the Obama press conference yesterday…
“For the 85 to 90 percent of Americans who already have health insurance,” Obama helpfully informed his audience, “they’re already experiencing most of the benefits of the Affordable Care Act — even if they don’t know it.” Insisting that the implementation has already been accomplished for the already-insured, Obama claimed, “Now they don’t have to worry about anything else.”
Nonsense, scoffed Washington Post fact checker Glenn Kessler. “There are a variety of studies and reports that suggest that, beyond those groups, some 10 million people face the prospect of losing their current health care,” Kessler said in rebuttal to the President’s remarks.
It’s just not a pretty picture. Follow the link to read about:
- Obamacare applicattion and extensive documentation on tangible assets, alimony and tips for your job
- Employees being relagated to part time status
- Reductions in Medicare reimbursements leading to fewer providers
Chaos is coming. Obamacare unleashes a trainwreck. What’s not to like?
Just How Ignorant Is President Obama About Realities Of ObamaCare? – Investors.com.
At his press conference this week, President Obama tried to reassure Americans about ObamaCare. Instead, he displayed either an incredible lack of understanding about his own law, or something far worse.
You can view the link for his examples of Obama’s presentation of how well it’s working. The problem is the train wreck coming down the pike as detailed by IBD:
- Really? The Congressional Budget Office expects 7 million workers — and possibly as many as 20 million — will lose their employer coverage because of ObamaCare. That’s plenty to worry about.
- The Centers for Medicare and Medicaid Services said millions of seniors will get dumped from their private Medicare Advantage plans by 2017 thanks to sharp payment cuts required by the law.
- That’s only true if you ignore the fact that ObamaCare’s high-risk pools have been a disaster, attracting a third as many people as predicted while costing far more than the administration budgeted.
- The overly complicated small-business tax credit has also been a bust, with only about 5% of eligible firms taking advantage of it. And so on.
Read the whole thing as they say.
President must address Obamacare ‘train wreck’ | The Great Debate.
When even a key architect of Obamacare says the law’s implementation will resemble a “train wreck,” it is clear that its biggest remaining supporters need to finally level with the American people about what’s in store — starting with President Barack Obama.
The president must step into the breach and explain to the public that skyrocketing premiums and a raft of new taxes, penalties and fees are coming their way.
Not holding my breath.
Insurers would report ObamaCare taxes under GOP bill – The Hill’s Healthwatch.
Both measures require insurers to tell consumers the amount paid under the Affordable Care Act’s exchange fees, risk-adjustment charges and other taxes.
Who could have a problem with the insurance companies disclosing taxes paid to the government that are collected from their consumers? An educated consumer is good, right?
Study: Businesses In States That Reject ‘Obamacare’ Could Face Fines Topping $1 Billion A Year « CBS DC.
“It highlights how complicated the Affordable Care Act is,” said Haile. “We wanted to make sure the business community understood.”
Read the whole thing.
ObamaCare Taxes Designed To Increasingly Bite Middle Class – Investors.com.
But these taxes, commonly described as targeting the rich, will soon hit middle-income families.
Be careful out there.
Obamacare Makes First Contact With Many on Tax Day | Fox News.
The government will be using the tax returns due today to decide who will receive an estimated $25 billion in new insurance subsidies next year.