The BNA Tax and Accounting Center is the only planning resource to offer expert analysis and practice tools from the world's leading tax and accounting authorities along with the rest of the tax...
By R. Zebulon Law, Esq. and Christy L. Lewis, Esq.
R. Zebulon Law, A Professional Corp., Costa Mesa, CA
Now that the U.S. Supreme Court has officially upheld the Patient Protection and Affordable Care Act of 2010 (commonly known as "Obamacare"), the implementation of additional taxes will start taking place in the very near future. Most notably, individuals who fail to acquire "qualifying" health insurance coverage will be subject to an additional income tax of 1% in 2014, 2% in 2015, and 2.5% in 2016. Beginning in 2013, individual taxpayers making over $200,000 annually ($250,000 for married individuals who are filing jointly) will be subject to increased Medicare tax rates (2.35%, up from 1.45%) and an "unearned income" healthcare surtax of 3.8% on all interest, dividend, capital gain, and passive business income. These increases, coupled with the threat that Congress will fail to extend the Bush tax cuts, could result in taxpayers paying a 25% tax rate on income that, in 2012, would have been taxed at a rate of only 15%.
In addition to these individual tax increases, beginning in 2013, business owners will be required to satisfy numerous requirements related to employee healthcare plans and will be subject to a plethora of new taxes and expenses. For businesses, the tax consequences of Obamacare will become much more severe in 2014 when a barrage of new provisions take effect. Once these additional provisions take effect, businesses with 50 or more employees may find themselves subject to hundreds of thousands of dollars in increased tax liability and potential penalties for failing to comply with the new requirements.
For more information, in the Tax Management Portfolios, see Cowart, 389 T.M., Medical Plans — COBRA, HIPAA, HRAs, HSAs and Disability, and in Tax Practice Series, see ¶5920, Health & Disability Plans.
© 2012 R. Zebulon Law, APC.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)