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Old 09-14-2014, 09:50 PM   #21
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And how are they gonna pay for all that extra enforcement?
Smallminded meanness generally knows no bounds.
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Old 09-14-2014, 11:46 PM   #22
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Yes, yes, yes! What a wonderful way to grind the faces of the poor and the clueless! Create a Byzantine system that is beyond the comprehension of at least 50% of the population and then use the inevitable mass slip-ups as an excuse for a witch hunt. Brilliant!
Agree 100% that this is a Byzantine system, particularly the 'cliffs' which can easily mean thousands $$ either way depending upon just $1 difference in MAGI. IMHO- There was no excuse for not making subsidies a sliding scale vs MAGI just like income taxes. However ACA is the law of the land, passed by Congress, signed by Obama, and upheld by SCOTUS. We all must deal with it, at least until further reform is passed.

I would hope that IRS's subsidy reconciliation is not a "witch hunt" for honest middle/upper middle class folks who took subsidies after projecting & reporting/updating income in good faith. But subsidy overpayments are a federal debt owed under the law & should eventually be repaid. The merely "clueless" should still pay what they rightfully owe, particularly since updating income for ACA is less taxing (pardon the pun) than filing the estimated quarterlies which millions of taxpayers have done for decades. However I also hope they really go after those who deliberately gamed the system by knowingly under-reporting income &/or neglecting to report significant increases in income. That is fraud, plain & simple. It should be prosecuted like any other fraud. It is stealing taxpayer $$ that could have gone to benefit the needy (e.g. further expansion of Medicaid, etc.).

I fail to see how this subsidy reconciliation might hurt the truly "poor". Medicaid does not involve ACA subsidy, and subsidies are not reduced until MAGI exceeds 250% of poverty level. That 250% is actually ABOVE the median household income ($59,625 for family of 4, vs US median HH income $51,371, latest Census stats-2012). And those losing their reduced subsidy at 401-vs-400% FPL are in top 75th percentile of family income, so not poor but really (statistically) UMC.
http://aspe.hhs.gov/poverty/14poverty.cfm
http://www.census.gov/prod/2013pubs/acsbr12-02.pdf
http://www.nytimes.com/interactive/2...-map.html?_r=0
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Old 09-14-2014, 11:58 PM   #23
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And how are they gonna pay for all that extra enforcement?
Might have to raise taxes...


But seriously, folks, I just see this as one more patch of paperwork on the edifice of the US Tax Code. My annual returns, ancillary forms, worksheets, and supporting documents run well over 100 pages, even in years with no consulting or stock/fund activity.

This thing? Meh. One more form either automatically downloaded or keyed into tax software, or another hour of hand paperwork added to 50-100 hours of grinding for those without computer software. Might as well complain about the phased expiration of foreign tax credits, or why there are two different but competing educational tax credits, both of which must be calculated before choosing one.
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Old 09-16-2014, 12:03 PM   #24
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.......

This thing? Meh.......
For sure. It should be less complicated than estimated quarterlies or AMT which millions of taxpayers must deal with already.
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Old 09-16-2014, 12:09 PM   #25
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For sure. It should be less complicated than estimated quarterlies or AMT which millions of taxpayers must deal with already.
Except that most middle income taxpayers would not have any clue what AMT is or how to deal with it because it does not apply to them. These are the folks that H&R Block and their ilk are allowed to rape every year at tax time because the taxpayer has no clue how the tax code works. You really think we should be brutalizing people who run afoul of this Byzantine system? I guess you can be in charge of getting the lions angry and hungry...
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Old 09-16-2014, 03:42 PM   #26
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Except that most middle income taxpayers would not have any clue what AMT is or how to deal with it because it does not apply to them. These are the folks that H&R Block and their ilk are allowed to rape every year at tax time because the taxpayer has no clue how the tax code works. You really think we should be brutalizing people who run afoul of this Byzantine system? I guess you can be in charge of getting the lions angry and hungry...
Agree that few taxpayers of ANY income level understand an income tax system that is FAR too complex. And that this complexity is good for tax preparers' business. But ACA reconciliation is hardly "brutalizing" people any more than figuring any other tax or debt that people might rightly owe. And reconciliation may well benefit folks whose income fell significantly after their initial estimates &/or last reporting (e.g. due to job loss/cut in hrs, diability, retirement, etc.).

FWIW- Figuring ACA MAGI is quite simple-
http://laborcenter.berkeley.edu/pdf/..._summary13.pdf
And keeping track of what MAGI entitles you to what subsidy (if any) is also easy with various on-line calculator sites like this one often linked here.
Subsidy Calculator | The Henry J. Kaiser Family Foundation
This knowledge might just help you get the ACA subsidy you rightfully qualify for if the Feds have the wrong data (e.g. too high MAGI, too small household size, etc.).

BTW- Most taxpayers SHOULD know about AMT 'cause it does not just affect the "rich" anymore. It can be triggered with a gross income as low as $40,401 (for 2013)
http://www.irs.gov/pub/irs-pdf/f6251.pdf
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Old 09-16-2014, 04:20 PM   #27
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You don't have to school me on the tax code. I am a quite adept exploiter of whatever opportunities the IRS and Congress care to offer. Joe Twelvepack, OTOH, definitely is not.
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