Obamacare to make filing income taxes a nightmare for many low-income taxpayers this year
There are gong to be many millions of newly befuddled, fearful, and angry taxpayers this April, hit with the consequences of Obamacare’s social engineering when they try to file their taxes in April. Many will suffer unexpected financial penalties and costs, especially those accustomed to filing under the simplified tax forms applying to straight salaried people with standard deductions.
H&R Block is warning that “[n]o one can understand” the New Obamacare tax code requirements for filing this year. In fact, millions of people accustomed to filing the postcard-sized 1040EZ form will now have to file extremely complicated and detailed forms, one of which (IRS Publication 5187) has a 21-page single-spaced instruction manual.
Richard Pollock of the Daily Caller previews the ordeal ahead for many supposed beneficiaries of Obamacare’s subsidies.
This year, for the first time, taxpayers will feel the full weight of the Obamacare tax rules, which were enacted in 2010. The new tax code regulations will apply to all Americans who file 2014 tax returns.
Some Obamacare users may discover that they need to repay the government for the subsidies they received to cover their health insurance premiums. A few will discover they were not entitled to insurance at all.
Other taxpayers also will find their refunds are smaller, due to penalties incurred because they didn’t enroll in a government-approved health plan.
Penalties for non-compliance with Obamacare have tripled since 2013, from $95 to an average of $301, according to an email to The Daily Caller from software giant Intuit which runs TurboTax, a competitor to H&R Block.
Some of the torture that awaits lower-income taxpayers, many of whom do not possess advanced degrees in tax accountancy:
One is Form 1095, which will be sent to the estimated seven million Obamacare enrollees who received a federal subsidy.
Turner warned that many who will receive Form 1095 are likely to throw it out. “Many will think it’s junk mail.”
To prove they were entitled to subsidies, recipients will have to fill out a second document, Form 8962.
Mark Jaeger, a tax team leader at the software company Tax Act, which competes with H&R Block, says Obamacare recipients will be “most definitely” confused by Form 8962.
“If they’re trying to do it on their own doing, and do it by hand, that’s going to be pretty difficult for the user,” he told TheDC.
Turner agrees. “Millions of people who were used to doing a simple 1040 EZ form are going to be required, now, to fill out this complicated 8962 tax form.”
Keep in mind that the IRS has already announced that cutbacks, due to a tiny 3% budget reduction (something many businesses have had to deal with during the Obama years), mean that half the phone calls seeking assistance will not even be answered. This is the normal government bureaucratic response to any budget discipline – inflicting as much pain on the public as possible, while protecting bureaucratic perks like conferences in Las Vegas.
I have to wonder if John Koskinen, the IRS commissioner/political stooge, is planning to cite budget cutbacks as a reason for non-enforcement of Obamacare requirements and penalties, as a means of mitigating the political damage.