Tax Tip of the Week | No. 262 | An Obamacare Update

Tax Tip of the Week | Aug 6, 2014 | No. 262 | An Obamacare UpdateConflicting Court Rulings On ACA Tax Credits

Earlier last week, two courts in two different districts issued opposing decisions regarding tax credits for those who bought health insurance through federal exchanges.The court in Halbig v. Sebelius ruled that the IRS didn’t have the statutory authority to expand the scope of tax credits to include individuals who bought health insurance through federal exchanges, as the initial regulations only mentioned state exchanges. Whereas, the court in King v. Burwell upheld that the tax credits should be available to all individuals regardless of the exchange they used to purchase their health insurance.IRS Commissioner John Koskinen told a House subcommittee on July 23 that the IRS doesn’t plan on making any changes to processing or procedures as a result of the courts’ decisions. At this time, nothing will change, but stay tuned.

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