Most Obamacare subsidy recipients in 2014 were overpaid and had to give hundreds of dollars back to the IRS, substantially cutting into their refunds.
Almost two-thirds had to repay an average of $729 of the credit this year, which cut their potential refunds by nearly a third, an H&R Block analysis of its latest filing data found. Their average refund was $2,195.
The federal subsidy is supposed to help Obamacare enrollees pay for coverage, but is doled out based on income the recipient must report accurately and update. Because it’s aimed at low-income individuals and families, the repayments could hit hard.