A majority of ObamaCare customers, 52 percent, are being forced to pay back some of their subsidies during this year’s tax season, according to new data from H&R Block. Customers are paying back an average of $530, which has caused a 17 percent drop in the average return so far this spring, according to the analysis by the tax services giant.
The Obama administration had warned that people could end up paying back some of their subsidies because many were relying on previous years’ income when applying for the tax breaks.
H&R Block has predicted that “most filers” would owe some of their subsidies back to the federal government because they were relying on 2012 income.
The new data, which was released Tuesday, only represents about six weeks of tax filings. Still, it could pose a significant challenge for the administration as it faces an already tough tax season.
“It’s costing taxpayers a large percentage of their refund – a refund many of them count on to pay household expenses,” Mark Ciaramitaro, vice president of H&R Block health care and tax services, wrote in a statement.
Last week, the Department of Health and Human Services asked 800,000 people to delay their tax filings because the agency sent out the wrong forms. The average refund so far this year is about $3,000, according to H&R Block.
Officials said last week that less than 10 percent of people had filed their taxes.
Source: The Hill, February 2015