This year’s tax season will be a headache for taxpayers. A 21-page IRS publication, No. 5187, explains all the ramifications of Obamacare and your taxes. The government has been quiet about all the new forms, calculations and extra taxes that many families will be paying. This is its dirty little secret.
Form 1095A will describe your coverage to put on your return. However, if you received subsidies, you’ll have to complete Form 8962 to reconcile your subsidies with your income. If your income was higher for the year than what you estimated when starting the subsidies, you may have to pay those subsidies back.
2015 will be a hard year for those receiving coverage through Covered California. Not only are their premiums, deductibles and out-of-pocket expenses increasing, they may have to pay new taxes. They’ll also pay more to tax preparers to complete all those new forms. H&R Block loves all this new business.
Like every government mandate, Obamacare is so complicated that many citizens will be unable to follow all the regulations. Then they’ll be hit with large fines and penalties. That snake in the grass, the IRS, is laying in wait.