H&R Block, the largest retail tax preparation firm in the U.S., warns that the Affordable Care Act is “likely to confuse millions of taxpayers who try to tackle their tax returns for 2014,” the Daily Caller reported Monday.
“Now that the Affordable Care Act has made healthcare a tax issue, no one can understand it,” says the tax-preparation giant, which has more than 24 million tax clients worldwide.
Many of those who will be hurt are lower-income earners. According to H&R Block’s Tax Institute, almost three out of every four in this group are unaware of the fact that they need to file anything with the IRS due to the fact they receive insurance through Obamacare.
Former IRS Commissioner Mark W. Everson said the new Obamacare requirements will deliver a “shock to the system.”
“Low-income filers are not used to itemizing and it will be a big challenge for them,” he told the Daily Caller. “You’re introducing a whole new level of complexity.”