JavaScript is required to run this application. Please enable JavaScript, then refresh this page.

Summary:

Changes in tax laws.

Article Body:

June 29, 2012
Our Tax Tips page gives you a brief overview of the key tax changes that may affect your tax planning and financial strategies. Please call our office for details of how the new
changes may affect your specific situation.
Desert Foothills Accounting & Tax Services: http://www.desertfoothillscpa.com/taxtips.htm

Supreme Court upholds health care law
The U.S. Supreme Court on Thursday June 28 declared the mandate in Section 5000A requiring U.S. citizens and legal residents to maintain essential health coverage, to be a permissible exercise of Congress’s taxing powers under the
Constitution. Several health-care related elements are already in effect and the Court’s decision allows them to
continue. These include:
- A temporary high-risk pool for individuals with preexisting health conditions
- A prohibition on lifetime dollar limits for essential benefits in insurance
- A requirement that dependents be allowed to stay on parents’ health insurance until they turn age 27

In addition, starting in 2014, it will be prohibited from discriminating against any individual based on a preexisting condition. The states will be required to establish health insurance exchanges, and the insurance premiums of individuals in households with income up to 400% of the poverty line will be subsidized.
Other key provisions:
- A requirement that health insurers sell coverage to anyone
- A requirement that people in the same age group pay the same premium
- A requirement that every company with more than 50 full-time equivalent employees offer affordable health insurance to employees

Tax provisions:
- Refundable tax credits to eligible taxpayers to use for the cost of health insurance
- A small business tax credit for small businesses up to 50% of health insurance
- Requires insurers that provide minimum coverage report to the IRS
- Threshold for medical deductions for medical expenses increase from 7.5% of AGI to 10% of AGI
-Additional tax of .9% on wages that exceed a threshold amount
- A penalty on employers who do not offer affordable health insurance
- A 3.8% tax on net investment income when AGI exceeds a threshold
- An annual tax on pharmaceutical manufacturers
- An annual tax on medical device manufacturers
- Amounts paid for over the counters medications will not be allowed from HSA (Health Savings Account)

On Friday, the U.S. Congress passed a comprehensive extension of the highway and infrastructure project along with a one year extension of low student loan rates. The permitting time for these projects was also cut in half. The student loan rates were due to double so this is good news all around!

Desert Foothills Accounting & Tax Services: http://www.desertfoothillscpa.com/taxtips.htm

Notes:

Was this answer useful to you?