Kaiser Family Foundation says half the U.S. households eligible to receive help buying insurance last year under the health care overhaul will have to repay some of that aid this tax season. Blame the tricky task of predicting future income.
Kaiser says these repayments will average nearly $800, but the actual amounts will vary widely. Researchers also estimate that an additional 45 per cent of eligible households didn’t get enough help and will receive a refund.
For 2014, the federal overhaul started offering income-based tax credits or subsidies to help people buy coverage on public insurance exchanges. To get that assistance, applicants have to estimate what their household income will be when the coverage starts. Then they have to reconcile that estimate with actual income at tax time.