TaxMama s TaxQuips Health Care Mystery

Today TaxMama® hears from SwampWiz in the TaxQuips Forum, who is frustrated (can you blame him? Please read his detailed rant. Following is simply a summary.)  “I had read an official IRS notice that stated that if the individual’s income were to be “higher” than the one that had been proposed for the subsidy, the individual would face a tax liability for that difference.

Unfortunately, I cannot seem to locate that document online!

Dear Swampy, 

You’ve come to the right place.

The information on the reconciliation of the credit can be found at
IRS Regulations 1.36B-4(a)(3)(i).  (Courtesy of page 4-39 of the updated Spidell Annual Update syllabus)

Note that there is a limit on the repayment if they have received excess credits. They may end up repaying less than the full amount of the subsidy.

Try to figure all this out. It’s absurd that the legislators made it all this complicated.

As Josh Brolin said in one of the few episodes of Mr. Sterling, Congress should not pass any tax laws without being required to prepare their own tax returns.

And remember, you can find answers to all kinds of questions about the Health Care Act and other tax and business issues, free. Where? Where else? At

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