Approximately 50 percent of those who received subsidies in 2014 to purchase health care under the Affordable Care Act had to pay the money back. Those who had to pay back the money found out that they had to do so when filing their taxes this year. Click here to watch or read more information on IRS Back Taxes.
The average amount that was required to be returned to the Internal Revenue Service was $800. The money had to be paid back due to miscalculations on estimated income.
Many who received the health care subsidy had estimated their income to be lower than what it actually was. Individuals who earn their income from sales and freelancing jobs don’t have a predictable income from year-to-year and may experience difficulty in estimating what their total income for the following year will be.
The United States Government Accountability Office recently found that the current system on the Affordable Care Act website does not yet have the ability to verify income to prevent possible fraudulent behavior when applying for subsidies.
Another study done by the Office of the Inspector General found that the current website also does not currently have the proper measures in place to calculate and authorize health care subsidies for those who apply for them.
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Law Offices of Darrin T. Mish, P.A.: Tax Attorney