How King v. Burwell Creates Tax Problems for 2014-2015 Health Care Enrollees

Source: Andy Grewal, University of Iowa – College of Law, Legal Studies Research Paper No. 14-30, November 21, 2014

From the abstract:
Commentators have expressed concern that a government loss in King v. Burwell, which addresses whether taxpayers can enjoy tax credits for policies purchased on federal health care exchanges, will lead to a “death spiral” during future enrollment seasons.

However, this discussion threatens to mask the potential tax problems facing persons who purchase policies this enrollment season. As this short article explains, purchasers may be faced with a surprising tax bill when they complete their 2015 tax returns.