Most Obamacare subsidy recipients in 2014 were overpaid and had to give hundreds of dollars back to the IRS, substantially cutting into their refunds.
Almost two-thirds had to repay an average of $729 of the credit this year, which cut their potential refunds by nearly a third, an H&R Block analysis of its latest filing data found. Their average refund was $2,195.
The federal subsidy is supposed to help Obamacare enrollees pay for coverage, but is doled out based on income the recipient must report accurately and update. Because it’s aimed at low-income individuals and families, the repayments could hit hard.
One in four of the recipients were underpaid, and received an extra $425 in their refund on average.
“There was quite a bit of new [Affordable Care Act]-related complexity for taxpayers to deal with this tax season,” Mark Ciaramitaro, vice president of H&R Block health care and tax services, said in a statement announcing the figures. (RELATED: H&R Block: No One Can Understand New Obamacare Tax Code)
The new numbers are an increase from H&R Block’s February analysis, which showed a little over half of the subsidy recipients had to repay an average of $530, reducing their average refund by about 17 percent.
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