• Quote of the day: Prospective income verification “a fantasy”

    As I reported earlier,  income verification requirements are already quite demanding — far more demanding than verification requirements for tax benefits received by other Americans such as business-expense deductions — but in the end verification in advance of how much lower-income American families will earn over a year is a fantasy.  Lower-income Americans often work in part-time, intermittent, or seasonal jobs and are paid hourly wages, making predicting income exactly a year in advance simply not possible. Lying on an application is subject to serious civil and criminal penalties, and the amount of tax credits received by an individual will in any event be reconciled with actual income at the end of the year.  A good-faith estimate of income is all that is possible.  Congress cannot reasonably require the impossible.

    Timothy Jost, Health Affairs Blog

    @afrakt

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    • It’s that word “reasonably” which is so troubling.

    • States have been struggling with this requirement since the requirement to electronically verify income was announced. There have been some pretty creative solutions to this issue….

    • I know that I make over 100k, but I plan on lying on the forms and claiming that I only make 20k instead.

      After all, the government wont come after me and if they do, I’ll just claim that it was too hard to predict how much money I make in a year.

      • Well the you will have a debt to pay

      • You realize this is the IRS you’re saying you’re saying you’re going to lie to, right?
        They can garnish wages & put people in prison.

        LOTS of people don’t pay their taxes “up front”, but are held to pay them when they’re due. This is not that different, and not really anything unusual.

        I also don’t think the risks would be worth it to most people, just to get a bit of a discount on medical insurance.

      • You may think it is a joke but messing with the IRS is not
        a laughing matter and this organization is not known for its humor.
        https://www.youtube.com/watch?v=22HcvlmfRZY

    • Actually – from afar – this would be the issue I would most worry about. It has happened before