Rush Limbaugh has a brilliant plan to help people evade the tax penalty for failing to buy health insurance under the Affordable Care Act. If you just make sure you pay taxes rather than getting a refund, the IRS won’t be able to collect the tax.
Conservative commentator Rush Limbaugh says he’s discovered a sure-fire way to skirt Obamacare’s penalties for failing to obtain health coverage next year – but you’d have to give up a fat tax refund.
The fine for failing to obtain insurance under the so-called “individual mandate,” which starts at $95 or one percent of taxable income next year, will automatically be collected by the IRS from tax refunds. But if you make sure you don’t get a refund, the agency won’t be able to collect the penalty, Limbaugh told listeners.
“[I]f you structure your taxes so that you do not get a refund, you do not have to buy insurance and you do not have to pay a fine ‘cause they can’t collect it from you if you don’t have a refund due — and that is just another nail in the coffin of Obamacare imploding on itself,” Limbaugh said on his show Thursday night, according to a transcript.
Genius. Pure genius. If you just make sure to pay the government more money than you have to so you don’t get a refund, you won’t have to pay the government for failing to get health insurance. Except those tax penalties do build up over time and they carry interest, which means you’ll have to make sure you never get a refund again. And the winner of the Cutting Off Your Nose to Spite Your Face Award goes to…