|
How Health Car Bill Will Affect (some of) You
Here's how the health care overhaul would affect taxpayers, according to The Tax Institute at H&R Block:
Taxpayers without qualifying health care coverage:
Beginning in 2014, taxpayers who are required to obtain or maintain qualifying health care coverage will face a penalty if they do not comply. The penalty increases from $95 in 2014 to $695 in 2016. They must file a return substantiating required coverage beginning in 2014.
Certain individuals may qualify for a subsidy to help cover the cost of insurance. This subsidy will be administered through the insurance company, with any difference being reconciled through the individual tax return.
Based on the 2009 poverty level data currently in effect, a family of four with household income less than $88,200 would qualify for such a subsidy.
Taxpayers who contribute to flexible spending accounts or health savings accounts:
Beginning in 2011, only prescribed drugs and insulin will be reimbursable through flexible spending accounts or health savings accounts. As a result, over-the-counter drugs such as aspirin or medical-related items such as bandages will no longer be qualified expenses for HSA or FSA purposes.
Looks like a hidden tax, to me.
Beginning in 2013, the annual contribution to a flexible spending account is limited to $2,500. The current limit is $5,000.
The penalty for non-qualified distributions from health savings accounts increases from 10% to 20% in 2011.
Taxpayers with large medical expenses:
For 2013-16, the threshold for deducting medical expenses is increased from 7.5% of adjusted gross income to 10%. The threshold is not changed for individuals who are at least age 65 by the end of the year.
Higher-income taxpayers:
Beginning in 2013, the 1.45% employee portion of Medicare tax will increase by 0.9 percentage points for taxpayers with earned income in excess of $200,000, or $250,000 for joint filers. Any tax not fully withheld and sent to the government by the employer must be paid by the employee through their tax return. This also applies to self-employment income.
Also in 2013, taxpayers with adjusted income more than $200,000 ($250,000 for joint filers) will be subject to an additional 3.8% tax on net investment income (such as interest, dividends, capital gains).
Posted by: Bobby 2010-03-24 |
