The 2014 tax-filing season promises to bring a new wave of public discontent over Obamacare. The Wall Street Journal,
This tax-filing season brings the first enforcement of the Affordable Care Act’s individual mandate–the complexity of which could become a boon for tax-preparation firms. The instructions for completing the mandate exemption form run 12 pages, list 19 types of exemptions (with multiple codes), and include worksheets that may require individuals to go to their state exchange’s Web site to find the monthly premiums that will determine whether they had access to “affordable” coverage.
This added documentation could confuse those used to filing short, simple tax returns. Potential bad outcomes include: filers could give up, and pay the mandate tax even though they qualify for an exemption; filers could feel compelled to hire a tax preparer to sort through the issues for them; or filers could complete the form incorrectly and find their refund held in limbo while the IRS works to resolve the errors.
Meanwhile, Americans who purchased insurance last year and obtained federal premium subsidies will have to reconcile their income and taxes owed with the subsidies they received—which were based on estimated income. The Journal article cited an H&R Block analysis that as many as half of the 6.8 million individuals who received subsidies will have to repay a portion of them.
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