Most filers who received government subsidies to buy Obamacare plans had to pay money back to the IRS this year, according to an H&R Block analysis released Monday that looks at the health law’s first full tax season.
The tax-prep giant studied its own massive customer base and concluded that two-thirds of its filers who got subsidies from Obamacare were overpaid during the course of the year, and owed money back to the IRS on the April 15 deadline.
They repaid $729 on average, cutting the average refund by about a third.
Under the original terms of the Affordable Care Act they would have been capped at repayments of just $250, but Congress went back and lifted those caps, ensuring that the government could “claw back” most of the overpayments, and saving billions of dollars that have gone to other government priorities.
This tax season marked the first time the IRS has had to enforce its part of Obamacare — the tax penalties levied on those who lacked insurance, and the tax subsidies paid to Americans who qualified for help in buying plans.
Continue reading at: The Washington Times…