Originally Posted by TXINSURANCE
The big issue here is that BCBS published it on their site. Blue Cross usually does not publish anything unless their legal department has reviewed it, and STI called them and they said their legal department approved of it. BCBSTX has the same parent company as BCBSIL, and both are showing the same statement.
I have searched for documentation ever since STI told me about the rumor a few days ago, and I cannot find any documentation for it being income. Neither can any CPA we talked to. We even called the CPAs who produce seminars on PPACA for other CPAs and they had never heard of the APTC subsidy being income. However, that doesn't mean it's not hidden somewhere in the 20,000+ pages of regs. So if anybody has proof that it is true, please show us the source documentation! If true, this is HUGE. What a nightmare that would be.
Now, we know that excess subsidy is taxable. So, for instance, if you get a $4,000 subsidy but you are only qualified for $2,000 of it, then the excess is taxable. (EDIT: I should have said "additional tax" instead of "taxable". It's also called a clawback.). But what STIBroker is talking about is more than just excess subsidy. The BCBSTX site says the whole subsidy is taxable income. Crazy, I tell you. Since when is a tax credit also taxable income?