The Affordable Care Act (Obamacare): If You Do Not Have Health insurance (Uninsu

EFFECTIVE JULY 1, 2010

The Act imposes a tax of 10% on the amount paid for indoor tanning services.

EFFECTIVE JANUARY 1, 2013

Medical Deductions For Tax Purposes: Health Reform 2010:

• Increases the threshold for deduction of unreimbursed medical expenses from 7.5% of adjusted gross income to 10% of adjusted gross income for regular tax purposes.
• Waives the increase for individuals age 65 and older until tax year 2017.

Medicare Part A: Health Reform 2010 increases the Medicare Part A (hospital insurance) tax rate on wages by 0.9% (from 1.45% to 2.35%) on earnings over $200,000 for individual taxpayers and $250,000 for married couples filing jointly

Unearned Income:  The Act imposes a 3.8% Medicare tax on unearned income individual taxpayers with adjusted gross income over $200,000 and married couples filing jointly with adjusted gross income over $250,000. This includes income from interest, dividends, capital gains, annuities, royalties and passive rental income. It does not include tax-exempt interest or retirement plan payouts. 

Medical Devices: The act imposes an excise tax of 2.3% on the sale of any taxable medical device.

Insurers of employer-sponsored health plans: The Act imposes a tax on insurers of certain high-value employer sponsored health plans.

Pharmaceutical Manufacturers and Health Insurance Companies:

• Health Reform 2010 imposes new taxes to pay for health reform on the pharmaceutical manufacturing sector and the health insurance sector starting in 2012 and 2014 respectively.
• The Act limits the deductibility of executive and employee compensation to $500,000 per applicable individual for health insurance providers.

EFFECTIVE 2014

There is a penalty for not having health insurance. See Penalty For Not Having Health Insurance

Please share how this information is useful to you. 0 Comments