Obamacare takes a much bigger bite out of millions of wallets
Initial estimates from tax professionals H&R Block ( NYSE:HRB ) in mid-February noted that about half of all enrollees (52%) in Obamacare were expected to owe money to the government, and, at this time, the average payback was running around $530 and reducing the average tax refund by 17%. With H&R Block's full data set from the ACA now in, since tax season is officially over, we've learned that the tax consequences tied to the APTC were far worse than expected !
According to final ACA data from H&R Block, instead of around half of those enrolled owing money back to the government for underestimating their 2014 wages, nearly two-thirds of tax filers who received a premium tax credit owed money back to the government. Basing this off the data from mid-October, we're talking about close to four-and-a-half million people. Further, the amount owed jumped substantially, from an average of $530 and 17% of the average tax filer's refund, to an average of $729, reducing the average refund by a third!
H&R Block's data shows that a considerably smaller-than-expected percentage of tax filers (25%) overestimated their income and wound up with an average APTC-based refund of $425, boosting their tax return by an average of 18%.
For those people who chose not to purchase health insurance, the average penalty was to be the greater of $95 or 1% of their modified-adjusted gross income. Most people had been expecting a $95 penalty. The average penalty was in fact $178 per H&R Block.
http://www.fool.com/investing/general/2015/05/02/obamacares-tax-consequences-much-worse-than-initia.aspx?source=eogyholnk0000001
http://www.fool.com/investing/general/2015/05/02/obamacares-tax-consequences-much-worse-than-initia.aspx?source=eogyholnk0000001
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