If this year’s real-estate market is a good one for Larry Lyons, the federal subsidy that helped him buy health insurance may turn into a huge bill at income tax time.
Four months after the Goodlettsville real-estate agent chose a health insurance plan on healthcare.gov, he’s perplexed by a letter from the U.S. Department of Health and Human Services asking him to prove his income and his children’s citizenship.
“I have been filing tax returns for years with the IRS,” Lyons said. “Now, I am going to have to send citizenship documentation.”
And he’s baffled by the demand for upfront proof of his 2014 income, which can vary widely depending on how many houses he sells and the prices of those homes.
If the estimate he gave when he applied for coverage turns out to be low, Lyons could be in for an unpleasant surprise in April – and so could many others, according to George Brandes, vice president of health care programs at Jackson Hewitt Tax Service.