Friday, February 20, 2015

How Many Obamacare Taxes Are There?

◼ The Affordable Care Act is looking more and more burdensome to millions of Americans hunched over their tax returns. So just how many Obamacare taxes are there? - Forbes

...it depends how you count and what you regard as a tax. But here’s my tally:
  • 2.3% Tax on Medical Device Manufacturers (this doesn’t hit you directly, but indirectly it sure can).
  • 3.8% Net Investment Income Tax. This one is a big one. Depending on your income, it adds a 3.8% tax on top of your interest, dividends and capital gains.
  • Employer Mandate on business with over 50 full-time equivalent employees to provide health insurance to full-time employees. $2000 per employee $3000 if employee uses tax credits to buy insurance on the exchange.
  • 40% Excise Tax on high-end (Cadillac) Health Insurance Plans (40% excise tax on the portion of employer-sponsored health coverage that exceeds $10,200 a year and $27,500 for families).
  • Medical Deduction Threshold tax increase (threshold to deduct medical expenses as an itemized deduction increases to 10% from 7.5%).
  • Individual Mandate (a tax for not purchasing insurance, though the tax penalty is called a Shared Responsibility Payment, the greater of 1% of your income above the filing threshold of $10,150 for singles and $20,300 for married couples filing jointly or $95 per adult ($47.50 per child), with a maximum of $285 for a family, whichever is higher. It goes up in 2015.
  • Excise Tax on Charitable Hospitals which fail to comply with the requirements of ObamaCare.
  • Elimination of tax deduction for employer-provided retirement Rx drug coverage in coordination with Medicare Part D.
  • Medicare Part A Tax increase of .9% over $200k/$250k.
  • An annual $63 fee levied by ObamaCare on all plans (decreased each year until 2017 when pre-existing conditions are eliminated) to help pay for insurance companies covering the costs of high-risk pools.
  • Medicine Cabinet Tax (over the counter medicines no longer qualify as medical expenses for flexible spending accounts (FSAs), health reimbursement arrangements (HRAs), health savings accounts (HSAs), and Archer Medical Saving accounts (MSAs).
  • Additional Tax on HSA/MSA Distributions
  • Health savings accounts or Archer medical savings accounts, penalties for non-qualified medical expenses of 10% to 20% in the case of a HSA and from 15% to 20% for an MSA.
Also check out this full list of taxes provisions from the IRS, plus the joint tax committee on the Affordable Care Act. KEEP READING

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