[Ed. – Yes, millions. H&R Block estimates that two thirds of subsidy recipients will owe the IRS for overpaid subsidy amounts.]
The problem began to surface back in January. At that time, H&R Block estimated that around half of the 5.5 million Obamacare enrollees would find out that they received more subsidy than they were entitled to, resulting in an average payback of $208.
However, now that the filing date for income taxes has passed, H&R Block’s estimate falls way short of reality. The latest figures released by the tax preparation giant indicate the number of Obamacare enrollees who are having to payback part of their subsidies is closer to two-thirds, or nearly 3.7 million people. Additionally, instead of paying back an average of only $208, the real average payback figure is closer to $729.
Now realize that most people that received subsidies qualified because they don’t make a lot of money or at least enough to live very comfortably. That means receiving a bill demanding $729 in many cases is going to be a backbreaker.
To add to their financial woes, their current subsidies are being reduced to match the income reported on their taxes, meaning they will be paying higher monthly premiums than perhaps they can afford. In some cases, it may force individuals or families to drop their coverage because they can longer afford the monthly premiums.