Avoiding the individual mandate

[dblack]

There's a lot of talk lately about whether the IRS will be 'enforcing' the individual mandate. But by the letter of the law, they can't. All they can do is withhold any refunds due a taxpayer who doesn't comply. If the taxpayer didn't overpay their taxes in the first place, the IRS can't touch them.

I remember when I was hired for my first real job (literally a McJob, I was a fry cook for MickeyD's), the person walking me through the paper work suggested that I claim zero exemptions for purposes of income tax withholding. "Why would I want to do that?", I asked. "Because then you'll get a bigger refund at the end of the year!"

"Really? Will that money accrue a decent interest rate or something?"

"Uh, well, no. But you'll forget about it, and it will be like a spring-time Christmas present!"

The stupidity of this stunned even my, admittedly stupid, 15-year-old self. Why would I voluntarily overpay my taxes, with the hopes that the government might give it back someday? But now, the stupidity comes home to roost. If Republicans are serious about undermining ACA (unfortunately, most of them aren't) they'll simply promote awareness of this glaring loophole.

 

[petro]

There's a lot of talk lately about whether the IRS will be 'enforcing' the individual mandate. But by the letter of the law, they can't. All they can do is withhold any refunds due a taxpayer who doesn't comply. If the taxpayer didn't overpay their taxes in the first place, the IRS can't touch them.

I remember when I was hired for my first real job (literally a McJob, I was a fry cook for MickeyD's), the person walking me through the paper work suggested that I claim zero exemptions for purposes of income tax withholding. "Why would I want to do that?", I asked. "Because then you'll get a bigger refund at the end of the year!"

"Really? Will that money accrue a decent interest rate or something?"

"Uh, well, no. But you'll forget about it, and it will be like a spring-time Christmas present!"

The stupidity of this stunned even my, admittedly stupid, 15-year-old self. Why would I voluntarily overpay my taxes, with the hopes that the government give it back someday? But now, the stupidity comes home to roost. If Republicans are serious about undermining ACA (unfortunately, most of them aren't) they'll simply promote awareness of this glaring loophole.

I self exempted the entire term of Obama. Never paid a fine.
Overpayment had no effect and I always got my full refund.
USCODE-2010-title42-
Chap157-subchapVI-
sec18116.PDF
Freedom not to participate in Federal Insurance Program.

 

[debbiedowner]

Questions and Answers on the Individual Shared Responsibility Provision | Internal Revenue Service

26 U.S. Code § 5000A - Requirement to maintain minimum essential coverage

 

[dblack]

Questions and Answers on the Individual Shared Responsibility Provision | Internal Revenue Service

26 U.S. Code § 5000A - Requirement to maintain minimum essential coverage

Thanks for the info!
From the link:

(2)Special rules
Notwithstanding any other provision of law—
(A)Waiver of criminal penalties

In the case of any failure by a taxpayer to timely pay any penalty imposed by this section, such taxpayer shall not be subject to any criminal prosecution or penalty with respect to such failure.

(B)Limitations on liens and levies
The Secretary shall not—
(i) file notice of lien with respect to any property of a taxpayer by reason of any failure to pay the penalty imposed by this section, or
(ii) levy on any such property with respect to such failure.

 

[Luddly Neddite]

trumpcare will include it.

I posted a link to this a while back, probably in ObamaCares.

 

[dblack]

trumpcare will include it.

I posted a link to this a while back, probably in ObamaCares.

This isn't about whether it will be repealed. The law itself says people can't be forced to pay the fine.

 

[dblack]

If the Republicans are serious about undermining ACA, why aren't they publicizing this loophole? (HINT: It's the same reason they won't repeal it)

 

[dblack]

I keep seeing more articles like this.
I.R.S. Says It Will Reject Tax Returns That Lack Health Insurance Disclosure

It's almost like the press is complicit (imagine that!).

 

[debbiedowner]

I keep seeing more articles like this.
I.R.S. Says It Will Reject Tax Returns That Lack Health Insurance Disclosure

It's almost like the press is complicit (imagine that!).

Did I not put the link directly from IRS?

Many more may be exempt for 2018 anyway if they do not receive a subsidy and the true premium is above a certain % of their income.

 

[dblack]

I keep seeing more articles like this.
I.R.S. Says It Will Reject Tax Returns That Lack Health Insurance Disclosure

It's almost like the press is complicit (imagine that!).

Did I not put the link directly from IRS?

Many more may be exempt for 2018 anyway if they do not receive a subsidy and the true premium is above a certain % of their income.

These kinds of subsidy schemes will always screw people on the bubble - people who don't qualify for subsidies and exemptions but still have to abide the mandate.

But that's not really the point of the thread. The point is that the law itself accommodates scofflaws who don't want buy shitty insurance. We just need to get the word out to people to stop overpaying their taxes via withholding. As long as the government doesn't owe you a refund, the mandate penalty can't be enforced.

 

[otto105]

There's a lot of talk lately about whether the IRS will be 'enforcing' the individual mandate. But by the letter of the law, they can't. All they can do is withhold any refunds due a taxpayer who doesn't comply. If the taxpayer didn't overpay their taxes in the first place, the IRS can't touch them.

I remember when I was hired for my first real job (literally a McJob, I was a fry cook for MickeyD's), the person walking me through the paper work suggested that I claim zero exemptions for purposes of income tax withholding. "Why would I want to do that?", I asked. "Because then you'll get a bigger refund at the end of the year!"

"Really? Will that money accrue a decent interest rate or something?"

"Uh, well, no. But you'll forget about it, and it will be like a spring-time Christmas present!"

The stupidity of this stunned even my, admittedly stupid, 15-year-old self. Why would I voluntarily overpay my taxes, with the hopes that the government might give it back someday? But now, the stupidity comes home to roost. If Republicans are serious about undermining ACA (unfortunately, most of them aren't) they'll simply promote awareness of this glaring loophole.

Jeez, still an admitted stupid 15 year old.

 

[hadit]

I keep seeing more articles like this.
I.R.S. Says It Will Reject Tax Returns That Lack Health Insurance Disclosure

It's almost like the press is complicit (imagine that!).

Did I not put the link directly from IRS?

Many more may be exempt for 2018 anyway if they do not receive a subsidy and the true premium is above a certain % of their income.

These kinds of subsidy schemes will always screw people on the bubble - people who don't qualify for subsidies and exemptions but still have to abide the mandate.

But that's not really the point of the thread. The point is that the law itself accommodates scofflaws who don't want buy shitty insurance. We just need to get the word out to people to stop overpaying their taxes via withholding. As long as the government doesn't owe you a refund, the mandate penalty can't be enforced.

The government has a vested interest in people overpaying their taxes, because it gets to use that money like an interest free loan. Hence, there will be no push to enlighten people.

 

[dblack]

There's a lot of talk lately about whether the IRS will be 'enforcing' the individual mandate. But by the letter of the law, they can't. All they can do is withhold any refunds due a taxpayer who doesn't comply. If the taxpayer didn't overpay their taxes in the first place, the IRS can't touch them.

I remember when I was hired for my first real job (literally a McJob, I was a fry cook for MickeyD's), the person walking me through the paper work suggested that I claim zero exemptions for purposes of income tax withholding. "Why would I want to do that?", I asked. "Because then you'll get a bigger refund at the end of the year!"

"Really? Will that money accrue a decent interest rate or something?"

"Uh, well, no. But you'll forget about it, and it will be like a spring-time Christmas present!"

The stupidity of this stunned even my, admittedly stupid, 15-year-old self. Why would I voluntarily overpay my taxes, with the hopes that the government might give it back someday? But now, the stupidity comes home to roost. If Republicans are serious about undermining ACA (unfortunately, most of them aren't) they'll simply promote awareness of this glaring loophole.

Jeez, still an admitted stupid 15 year old.

Yeah? How so? What am I'm missing?

 

[debbiedowner]

I keep seeing more articles like this.
I.R.S. Says It Will Reject Tax Returns That Lack Health Insurance Disclosure

It's almost like the press is complicit (imagine that!).

Did I not put the link directly from IRS?

Many more may be exempt for 2018 anyway if they do not receive a subsidy and the true premium is above a certain % of their income.

These kinds of subsidy schemes will always screw people on the bubble - people who don't qualify for subsidies and exemptions but still have to abide the mandate.

But that's not really the point of the thread. The point is that the law itself accommodates scofflaws who don't want buy shitty insurance. We just need to get the word out to people to stop overpaying their taxes via withholding. As long as the government doesn't owe you a refund, the mandate penalty can't be enforced.

The government has a vested interest in people overpaying their taxes, because it gets to use that money like an interest free loan. Hence, there will be no push to enlighten people.

Health coverage exemptions & forms

 

[dblack]

I keep seeing more articles like this.
I.R.S. Says It Will Reject Tax Returns That Lack Health Insurance Disclosure

It's almost like the press is complicit (imagine that!).

Did I not put the link directly from IRS?

Many more may be exempt for 2018 anyway if they do not receive a subsidy and the true premium is above a certain % of their income.

These kinds of subsidy schemes will always screw people on the bubble - people who don't qualify for subsidies and exemptions but still have to abide the mandate.

But that's not really the point of the thread. The point is that the law itself accommodates scofflaws who don't want buy shitty insurance. We just need to get the word out to people to stop overpaying their taxes via withholding. As long as the government doesn't owe you a refund, the mandate penalty can't be enforced.

The government has a vested interest in people overpaying their taxes, because it gets to use that money like an interest free loan. Hence, there will be no push to enlighten people.

Health coverage exemptions & forms

What is that supposed to mean?