More Obamacare fuckups

[Whirlin]

Not doubting you know your shit but what exactly does this mean? Let's just give a hypothetical. What's the cutoff for not owning federal taxes, 10,000 dollars right? So if someone made 10,000 dollars and had no tax obligation and they received 2000 dollars in tax credits for having to buy their own insurance, does that mean they get a check from the IRS for 2000 dollars from those credits? Or is there some math involved and it would be less than 2000?

Yes, a check for $2000
Usually there are phaseouts on credits, think of them as a reverse tax bracket... so it may be like, for every 1k over 10k you make, you'll get $100 less of a credit, so at 30k income, you get nothing... NOTHING, GOOD DAY SIR.

The best example of a credit is the Earned Income credit. Googling that will give you a ton more information on tax credits. The theory behind that credit is that if you make between like, 10k-25k (those values arbitrary... been years since I've looked it up), you'll get money back. The theory behind it is that if you made less than 10k, you're likely a student, child, etc, and shouldn't get money back. It's also earned income, so that's income subject to payroll taxes, not investment income or partnership income (which are considered passive forms of income).

Also since it's a tax credit and not an outright subsidy paid to the insurance company every month does that mean this person making 10,000 would have to pay for that 2000 dollars throughout the year and will receive a check a couple of months after they file their taxes? What do they do in the meantime when they need that 2000 dollars they didn't previously have? Put everything on a credit card and pay the high interest rates?

Yes. Or budget out the excess that they receive in April for the year. But there would be the initial sting upon implementation.