Millions of people who take advantage of government subsisidies to help buy health insuranc could by next year get stung by surprise tax bills if they don't actually project their income.
The Affordable Health Care Act will offer subsidies to help people buy private health insurance on state based exchanges, if they don't already get coverage through their employers. The subsisidies are based on income. The lower your income, the bigger the subsidy.
BUT, the government doesnt know how much money you're going to make next year. And when you apply for the subsidy this fall, it won't even know how much you're making THIS year.
So unless you tell the government otherwise, it will rely on the best information it has, your 2012 tax return, files this spring.
What happens if you or your spouse gets a raise and your family income goes up in 2012? You could end up with a bigger subsidy then you are entitled to. If that happens, the law says you have to pay back at least part of the money when you file your tax return in the spring of 2015.
That could mean smaller tax refunds or surprise tax bills for millions of middle class families.
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