1:00 AM Some Americans will be asked to estimate their 2014 earnings and could end up owing money. <\/p>\n
The Associated Press<\/p>\n
WASHINGTON - Millions of people who take advantage of government subsidies to help buy health insurance next year could get stung by surprise tax bills if they don't accurately project their income. <\/p>\n
click image to enlarge <\/p>\n
Barack Obama signs the Affordable Care Act into law March 23, 2010 in this file photo. The law requires people to pay back part of a subsidy if their income estimation is off. <\/p>\n
The Associated Press <\/p>\n
President Obama's new health care law will offer subsidies to help people buy private health insurance on state-based exchanges, if they don't already get coverage through their employers. The subsidies are based on income. The lower your income, the bigger the subsidy. <\/p>\n
But the government doesn't know how much money you're going to make next year. And when you apply for the subsidy, this fall, it won't even know how much you're making this year. So, unless you tell the government otherwise, it will rely on the best information it has: your 2012 tax return, filed this spring. <\/p>\n
What happens if you or your spouse gets a raise and your family income goes up in 2014? You could end up with a bigger subsidy than you are entitled to. If that happens, the law says you have to pay back at least part of the money when you file your tax return in the spring of 2015. <\/p>\n
That could result in smaller tax refunds or surprise tax bills for millions of middle-income families. <\/p>\n
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Health care subsidies carry tax risk<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" 1:00 AM Some Americans will be asked to estimate their 2014 earnings and could end up owing money. The Associated Press WASHINGTON - Millions of people who take advantage of government subsidies to help buy health insurance next year could get stung by surprise tax bills if they don't accurately project their income. click image to enlarge Barack Obama signs the Affordable Care Act into law March 23, 2010 in this file photo. Continue reading