Just weeks before the October Open Enrollment was to begin you may have heard the news that income verification was going to be on the "honor system" in the first year of Obamacare. The government is unable to verify actual income of health insurance applicants in order to grant premium tax credits.
The government actually said that stated income for individuals and families would NOT be verified in the 2014 year of the Affordable Care Act. This news caused widespread joy in some circles. In other words, an individual may indicate a lower than actual income in order to receive a premium tax credit. It is dishonest and irresponsible but some have taken the attitude that they are "owed" a discount on their health insurance and since nobody is checking, why not try to get away with under reporting income and take advantage of an opportunity.
Don't try it in Washington State, the model for all other state-run health insurance exchanges. Since Washington got started early to get the exchange set up they had plenty of time to install the income verification system. In other words, an individual in North Dakota may get away with defrauding the system but if a person in Washington fibs on the enrollment forms, it will automatically trigger an IRS AUDIT. You do not want the IRS on your porch!
Please tell your friends and neighbors that Washington State will be checking income tax returns on all applicants seeking premium tax credits. They have the system in place and will catch those who try to defraud the government.
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