The Supreme Court ruling upholding The Affordable Care Act (ACA) has resulted in a number of changes to the tax code.
The major provisions are taking effect in 2013 are:
· An additional .9% Medicare tax on wages above $200,000 ($250,000 for married joint returns)
· A new 3.8% Medicare tax on investment income. Investment income includes interest, dividends, rents, annuity income and capital gains (including taxable principal residence sales).
· An increase in the Adjusted Gross Income (AGI) limit for deductible medical expenses from 7.5% to 10%.
· The Small Business Health Care Tax Credit will continue. This offers a credit for employers that:
o Pay at least half of employee health insurance premiums
o Employ 25 or fewer full time equivalents (FTE)
o FTE average income is less than $50,000
In 2014 additional provisions take effect:
· The Individual Mandate starts. It requires US Citizens obtain minimum health care coverage or pay a tax penalty. The penalty increases each year through 2016.
· An additional tax will be imposed on businesses with 50 or more full time equivalents (FTE) employees
that do not offer minimum essential health insurance.
If you have any questions, please contact Gary at his office: 508-540-3683 or email him at INFO@DELLAPOSTACPA.COM He
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