Archive for Future Tax Projections
New “Refundable” Credit 2014
Posted by: | CommentsAfter December 31, 2013 …
Individuals between 100% and 400% of federal poverty level will qualify for refundable tax credit (“premium assistance credit”) to offset exchange-purchased health insurance premiums.
“Shared Responsibility Penalty” – 2014
Posted by: | CommentsAfter December 31, 2013 …
“Shared Responsibility Penalty” assessed against taxpayers who do not have health coverage. Penalty is phased in over 3 years starting in 2014 at $95 per individual ($285 per family); in 2015 at $325 per individual ($975 per family); and in 2016 at $695 per individual ($2085 per family).
Employer Health Insurance Penalty – 2014
Posted by: | CommentsAfter December 31, 2013 …
Employers with at least 50 full-time employees may be subject to penalty if not providing health insurance coverage to employees.
New Investment Income Tax – 2013
Posted by: | CommentsAfter December 31, 2012 …
New 3.8% Medicare tax assessed on net investment income of individuals, estates, and trusts with income over $200,000 Single and $250,000 Married Filing Joint.
Medicare Premium Increase 2013
Posted by: | CommentsAfter December 31, 2012 …
Medicare premium increases by 0.9% for taxpayers whose AGI (Adjusted Gross Income) exceeds $200,000 Single and $250,000 Married Filing Joint.
FSA Contributions Limit 2013
Posted by: | CommentsFor tax years aftger December 31, 2012 …
FSA contributions limited to $2,500.
Medical Expense Deduction 2013
Posted by: | CommentsFor tax years after December 31, 2012 …
Medical expense deduction increases to 10% after 2012, after 2017 for people 65 or older.
Employer-Sponsored Health Coverage 2011
Posted by: | CommentsCost of employer-sponsored health coverage must be shown on W-2 … but is not yet taxable to the taxpayer.
FSA, HSA, HRA, and MSA 2011
Posted by: | CommentsFSA, HSA, HRA, and MSA qualified distributions include withdrawals for prescription drugs and insulin only, no over-the-counter drugs.
Home Sales – Medicare Surtax 2013
Posted by: | CommentsIf you plan on selling your primary home at a substantial gain, take note.
High profit sales AFTER 2012 can trigger the special 3.8% Medicare surtax. Starting in 2013, the new health care law imposes a 3.8% levy on investment income of singles with adjusted gross income (AGI) over $200K and marrieds above $250K. The surtax is levied on the smaller of the filer’s net investment income or the excess of AGI over the thresholds. Capital gains are treated as investment income. Thus, if the surtax will hit you after 2012 and Read More→
Form 1099 Required … 2012
Posted by: | CommentsAfter December 31, 2011 …
Information reporting is required for payments of $600 or more for property or services to a non-tax-exempt corporation.
Health Care Reform – FSAs & HSAs 2013
Posted by: | CommentsThe health care reform package modifies the definition of qualified medical expenses for health FSAs and HSAs to conform to the definition used for the medical expense itemized deductions (excluding over-the-counter medicines unless prescribed by a health care professional) beginning in 2011.
Additionally, the health care package caps health FSA contributions at $2,500 per year after 2012, indexed annually for inflation after 2013.
Health Care Reform – 2014
Posted by: | CommentsStarting in 2014, the health care reform package (currently) will require most individuals not eligible for Medicaid, Medicare, other government-sponsored coverage or otherwise exempt to maintain minimum essential coverage. Individuals who fail to maintain minimum essential coverage will be liable for a penalty. The health care package uses a formula to calculate the penalty taking into account the taxpayer’s household income and a flat dollar amount. The flat dollar amount will start at $95 in 2014, rise to $395 in 2015 and increase to $695 in 2016.