H&R Block sees Affordable Care Act’s impact in tax refunds

Photo courtesy of Bloomberg
Photo courtesy of Bloomberg

The Affordable Care Act is changing tax refunds for 90 percent of H&R Block clients who enrolled for health insurance through federal or state exchanges in 2014, the Kansas City-based tax service said. The change in refunds comes as tax filers reconcile their 2014 income with the benefits they received under the ACA.

About 52 percent of H&R Block clients are paying a portion of their refunds back. Those filers are seeing refunds that are, on average, $530 smaller.

Another 38 percent of the firm’s customers are seeing larger refunds, with an average bump of $365.

Americans who received an advance tax credit to help them purchase health care in 2014 are now reconciling the benefit with their 2014 earnings. Those who earned less than expected in 2014 are getting bigger refunds; people who exceeded their expected earnings are giving back the difference.

Read more from the Kansas City Star


Tags:, , ,

Leave a Reply