irs-building-washington (1)IRS hasn’t decided whether to return cash wrongly paid by low-income Americans

The IRS reports over 300,000 Americans were wrongly assessed Obamacare penalties for 2014.

Most of them were low-income Americans who can hardly afford to spare the money.

And the IRS hasn’t decided if they want to return their money.

“As a result of IRS data sampling and additional analysis conducted by TAS Research, it was discovered that more than 300,000 taxpayers overpaid the ISRP on tax returns processed through the end of April, the report says.  Most of those taxpayers did not owe the ISRP because they were eligible for an exemption due to their low incomes,” reads a report from the office of IRS National Taxpayer Advocate Nina Olson.

The ISRP refers to the “Individual Shared Responsibility Payment,” a tax Americans must pay if they do not have health insurance plan.

And it’s both Individual and Shared.  And it’s assessed to punish the irresponsibility of those who are responsible for their own health care costs.

“Most of those taxpayers did not owe the ISRP because they were eligible for an exemption due to their low incomes,” the report reads.

The Advocate recommended the IRS return the money without required an amended return, but the agency might keep the cash.

“Since the majority of taxpayers use paid tax return preparers, most would probably spend more than the roughly $110 average overpayment amount

in preparer fees if amended returns are required,” the report read. “At the time the report was finalized, the IRS had not made a decision.”

Calculating your Individual Shared Responsibility Payment comes with 21 pages of instructions from the IRS.

The payment varies depending on marriage status and income.

The IRS gives these easy-to-follow instructions on how to calculate your Obamacare tax:

In general, the payment amount is either a percentage of your household income or a flat dollar amount, whichever is greater. You will owe 1/12th of the annual payment for each month you (or your dependents) do not have coverage and are not exempt. The annual payment amount for 2014 is the greater of:

1 percent of your household income that is above the tax return filing threshold for your filing status, such as Married Filing Jointly or single, or

Your family’s flat dollar amount, which is $95 per adult and $47.50 per child, limited to a maximum of $285.

According to the instructions a single male earning $40,000 a year would owe $298.50.

It would appear millions of American who owe the tax simply claimed they had insurance.

The IRS estimated 25% of filers owe the tax, but only about five percent self-reported doing so.

It is unknown if a shortfall in Obamacare tax revenue would destabilize the entire program, or force the IRS to investigate taxpayers and conduct “health insurance audits.”