affordable care act - Linkenheimer LLP CPAs & Advisors

The Personal Impact of the Affordable Care Act

Open enrollment for 2015 for Covered California closes on February 15th.

Open enrollment is the one-time during the year when most Californians who need insurance cannot be denied by a health plan and when millions can get subsidized health insurance for the upcoming year.

All individuals not covered by an employer sponsored health plan, Medicaid, Medicare, other public insurance program (such as Tricare), or meeting an exemption from coverage must acquire an approved private-insurance policy or pay a shared responsibility payment. If you do not have coverage or meet one of the exemptions, you will pay this payment. The fine for 2015 is either a) 2 percent of your total income or b) fines for each member of your household ($325/adult, $162.50/child, or $975/total household), whichever is greater.

Individuals who have limited income may enroll in Medi-Cal at any time.

Health care impacts 2014 income tax returns

Most people already have qualifying health care coverage and will only need to check a box to indicate that they satisfy the individual shared responsibility provision when they file their tax returns in early 2015.

However, an important Affordable Care Act tax provision for individuals and families is the premium tax credit. Further, […]

By Linkenheimer LLP|2020-09-03T20:05:33+00:00February 10th, 2015|affordable care act|1 Comment

Obama Administration Postpones Large Employer Health Care Mandate Until 2015

The requirement that businesses provide their workers with health insurance or face fines – a key provision contained in President Obama’s sweeping health care law – will be delayed by one year, the Treasury Department said Tuesday.

The postponement came after business owners expressed concerns about the complexity of the law’s reporting requirements and some viewed it to be a potential job killer in an already struggling economy. Under the Affordable Care Act, businesses employing 50 or more full-time workers that don’t provide them health insurance will be penalized. The extra year before the requirements go into effect will allow the government more time to assess ways to simplify the reporting process for businesses.

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By Linkenheimer LLP|2013-07-03T21:53:00+00:00July 3rd, 2013|2015, affordable care act, CPA, Health care, law, Linkenheimer, mandate, obamacare, postpone, Santa Rosa|0 Comments

Beware of the 3.8% Medicare Surtax for Estates and Trusts

Ever since the United States Supreme Court upheld the Affordable Care Act, most of the focus has been on how this increased tax effects individual taxpayers. As determined by this decision, individual taxpayers with modified adjusted gross income over $200,000 (or $250,000 for married taxpayers) are subject to an increased 3.8% Medicare surtax on certain investment income beginning in 2013.

Little focus has been given on how this increased Medicare surtax will increase tax liabilities for trusts and estates. Income in an irrevocable trust is either taxed to the trust or to the trust beneficiaries. If income in the trust or estate is accumulated at the trust or estate level, then the trust or estate pays the income tax. If the income is distributed to the beneficiaries, however, the trust receives an income tax deduction for the amount of the distributable net income (DNI) and the beneficiaries report the taxable income.

In the case of a trust or estate, the 3.8% Medicare surcharge is imposed on the lesser of either undistributed net investment income or the excess of adjusted gross income over the highest estate or trust income tax bracket. For 2013, the highest trust income tax bracket begins at $11,950, […]

By Linkenheimer LLP|2020-09-03T20:05:51+00:00June 3rd, 2013|3.8, affordable care act, carli ortiz, CPA, estate, Linkenheimer, medicare, Santa Rosa, surtax, tax, taxable income, trust|0 Comments

Increase in the Small Business Tax Credit

Under the Affordable Care Act (ACA), some small businesses may qualify for a small business tax credit. To be eligible, you must cover at least 50 percent of the cost of single (not family) health care coverage for each of your employees. You must also have 24 or fewer full-time equivalent employees and those employees must have average wages of less than $50,000 per year. In 2014, the tax credit goes up to 50 percent and will be available to qualified small businesses that purchase coverage through the new health insurance marketplaces in each state, called the Small Business Health Options Program (SHOP).

The SHOP marketplace will be open in October of 2013 for coverage that takes effect on January 1, 2014, or later.

For more info, click here.

Written by Mike Musson, CPA, Partner LinkedIn Profile

By Linkenheimer LLP|2020-09-03T20:05:51+00:00May 7th, 2013|affordable care act, CPA, linkenehiemer, mike musson, qualified small business, Santa Rosa, shop, single family, small business, small business health options, tax credit|0 Comments

Tax Increases Coming in 2012 under Affordable Care Act

Tax Increases Coming in 2012 under Affordable Care Act

Fast forward to next year and we are looking at a number of important tax increases on the horizon. The tax increases falls under the the Affordable Care Act (the Patient Protection and Affordable Care Act, P.L. 111-148, and the Health Care and Education Reconciliation Act of 2010, P.L. 111-152), and include higher Medicare taxes for high earners, a 3.8% surtax on unearned income of higher-income individuals and caps on FSA contributions. Companies also get to look forward to compliance issues, along with new health insurance deduction limitations and fees.

Increased Medicare tax for high-earning workers and self-employed taxpayers. For the tax year beginning after 2012, an additional 0.9% hospital insurance tax applies to wages and self employment income in excess of $250,000 for joint returns, $125,000 for married filing separately and $200,000 in all other cases.

Surtax on unearned income of higher-income individuals. Starting in 2013, an unearned income Medicare contribution tax is imposed on individuals, estates, and trusts. The tax is 3.8% of the lesser of either (1) net investment income or (2) the excess of modified adjusted gross income over the threshold amount ($250,000 for a […]

By Linkenheimer LLP|2012-07-27T22:35:00+00:00July 27th, 2012|2012, act, affordable, affordable care act, care, CPA, health care reform, Linkenheimer, medicare, Santa Rosa, tax increase|0 Comments