According to the AP/Sacramento Bee, millions of residents who will obtain federal subsidies to offset the cost of health insurance through the ACA’s insurance exchanges could be subject to additional taxes if they do not accurately project their income,.
Residents who fall under certain income thresholds will be able to apply for the subsidies. However, if an individual’s or family’s income increases over the year and they receive a larger subsidy than they are entitled, they would be required to repay part of the subsidy when they file their 2014 taxes in early 2015.
Health policy and tax experts have communicated that most of the ACA requirements relating to penalties and subsidies have not been adequately publicized. They cite the subsidy application, which requires applicants to estimate their 2014 income but does not indicate the requirement to repay a portion of subsidy if their income is higher than they projected.
