Over $572 Million in Excess Obamacare Tax Credits Paid Out

The Internal Revenue Service paid out over $572 million in excess Obamacare tax credits and sent incorrect forms to over half a million individuals due to a computer programming error, according a new government report.

The report released by the Treasury Inspector General for Tax Administration on Tuesday inspected the interim results of the IRS’s verification of Obamacare’s Premium Tax Credits, which were created to assist low or medium-income individuals and families to purchase health insurance in the marketplace.

Those who are eligible to receive tax credits under Obamacare can choose to have their credits paid either directly to their health insurance provider as a partial payment towards their monthly premiums—known as the Advance Premium Tax Credit—or can receive the tax credits as one lump sum on their annual income tax return.

According to the IRS, $11 billion worth of tax credits were paid in advance to insurers for fiscal year 2014. By March 26, 2015, the IRS processed around 1.4 million tax returns that showed $4.4 billion in credits, bringing the total to more than $15 billion for 2014. Individuals claimed more than $240 million in additional premium credits and received $572 million in excess advance payments, according to the agency.

The inspection also brought to light a computer programming error that led to more than half a million individuals receiving incorrect health insurance forms. (Read more from “Over $572 Million in Excess Obamacare Tax Credits Paid Out” HERE)

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