Obama Care (Affordable Health care Act) Taxes for High Earners and Large Businesses
Most of the new taxes are on what on so called high end earners. This group includes anyone making over $200,000 and families that making over $250,000. If you own a business with over 50 full-time equivalent employees making over $250,000 you are included in this group. Also if you are in an industry that profits from healthcare you are also included in this group. Essentially who will see gains under Obama Care are required to put money back in the program via taxes.
FACT: Tax increases generally affect single filers with an adjusted gross income (AGI) above $200,000 and married couples filing jointly above $250,000. Some of the tax increases don't kick in until single AGI hits $400,000 and married filing jointly AGI hits $450,000.
Obama Care (Affordable Health care Act) Taxes for the Average American With Health insurance
For most of the 85% of Americans with health insurance, making less than $250,000, most of the new taxes won't mean much of anything, however if you fall in one of the categories below there are certain taxes that will affect you and your family.
Obama Care (Affordable Health care Act) Taxes for the Average American Without Health insurance
There are approximately 15% of Americans without health insurance. These are primarily younger Americans who are just starting out looking for jobs. They will be required to obtain health insurance (Note: this is called the Individual Mandate) or will they will face a "tax penalty".
The good news is that many uninsured will be exempt from the Individual mandate due to income and will be offered cost assistance through the marketplace including Tax Credits (also available to small businesses), qualify for Medicaid, or will get insurance through work (the Employer Mandate requires large employers to insure full-time employees by 2015).
Adults who are under 26 will be able to stay on their parents plan as well, this will help to limit the number of young people who will pay the fee. Both the employer and individual mandates are considered to be part of our "shared responsibility" to expand the quality and affordability of health insurance in the United States as a trade for our new benefits, rights and protections.
Obama Care (Affordable Health care Act) Taxes for Small Businesses
Small businesses with less than 25 full-time equivalent employees will have access to tax credits to reduce premium costs of group plans.
Obama Care (Affordable Health Care Act) Taxes for Specific Groups With Health Insurance
Here are a few changes that my affect specific groups of Americans with health insurance:
• Other tax provisions such as changes medical deduction thresholds, HSAs, MSAs, and FSAs may impact some Americans by limiting tax deductions.
• The Medical Loss Ratio (MLR or 80/20 rule) will mean that some Americans may get rebates if health insurance companies spend on non-healthcare related expenses.
• Tax provisions like the 10% tanning bed tax, taxes on drug companies, taxes on medical devices and taxes on health insurance companies selling insurance on and off the exchange may affect the amount of money we pay for some health care related goods and services, but will not have a significant impact on our daily lives.
• The employer mandate has caused some companies to cut down full-time workers to part-time to avoid providing benefits, however major employers like Disney and Walmart have actually increased their full-time workforce in response to the looming 2015 deadline.
There are other aspects to the health care act that will affect how we raise our children, health care for elderly, our economy, freedom of information and more. However we are primarily focused on the tax aspects of the Obama Care (Affordable Health care Act). From a Tax Perspective Obama care affects primarily the job providers. How this will ultimately affect you still remains to be seen.
For more information and help with taxes and Obama Care feel free to call us at (562) 251-1300. We can help