Carmichael Times
Like Us On Facebook Follow Us On Twitter
Founded 1981
Serving Carmichael and Sacramento County
 
  Home Community Finance Employment Your Home Your Money Your Kids Your Health  
  Business Education Politics Police & Fire Veterans' News Real Estate Consumer News Taxes  
  Religion Food Recipes Gardening Car Care Fashion Beauty Pets  
  Lifestyles Sports Feature Writers Events Environment Human Interest Technology Travel  
 
Cimino Care Local Classified Advertising
Pay Legal Ads Online
Messenger Publishing Group
Shop Local Carmichael Rewards Program
Constant Contact




Taxes

How The Affordable Care Act Affects Your Tax Return

Posted: 10/18/2013

New health care laws may affect your taxes but do-it-yourself tax programs can help
New health care laws may affect your taxes but do-it-yourself tax programs can help.

(NAPSI)—In addition to significant health insurance changes, the Patient Protection and Affordable Care Act of 2010 included tax law changes. Several of those changes will impact 2013 federal tax returns, due April 15, 2014.

“Online tax preparation solutions like TaxACT will cover all the tax implications of the Affordable Care Act plus hundreds of other tax law changes,” said TaxACT spokesperson Jessi Dolmage. “All you have to do is answer simple questions. The program does the math and completes the tax forms for you.”

The tax law changes in the health care act, also known as “Obamacare,” for 2013 returns include:

• Reporting health insurance premiums, flexible spending beyond payroll deductions and other premiums paid by employees and their employers. “Simply enter the amount in Box 12 with Code DD on your Form W-2 when prompted by the tax program,” said Dolmage. “You’re providing information only; it won’t change your taxable income.”

• Higher threshold for deducting medical expenses. The threshold for itemizing medical expenses increases to 10 percent of your adjusted gross income (AGI). The threshold for taxpayers age 65 and older remains at 7.5 percent. Tax software will calculate the deduction based on medical expenses entered.

• 3.8 percent tax on net investment income. Individuals and heads of household with an AGI of $200,000+, married couples filing separately with an AGI of $125,000+, and couples filing jointly with an AGI of $250,000+ must pay the tax. Answer a few questions about investment income and your tax program will do the rest.

• Additional 0.9 percent Medicare tax on wages and compensation in excess of $200,000. Taxpayers in those same AGI ranges are subject to the additional Medicare tax. It’s automatically withheld from employee wages, with the total amount provided in Box 6 of Form W-2. The tax is calculated for business owners or self-employed using figures on Schedule SE.

The health insurance requirement begins to have implications on 2014 income tax returns (due April 2015). If you have health insurance, your online tax solution will guide you through the simple process of reporting it on your tax return. If you don’t have health insurance for a total of three or more months in 2014, you may pay a penalty that’s reported and calculated on your return. Tax programs will calculate the amount based on the number of uninsured individuals in your household and household income.

Uninsured individuals can shop and apply for health insurance through online “marketplaces,” also called “exchanges,” starting October 1, 2013. States will have their own marketplaces, use the federal government’s Health Insurance Marketplace, or have a hybrid of the two. Enrollment closes March 31, 2014.

If you don't have access to minimum required employer-provided
insurance and purchase insurance through a marketplace, you may qualify for an advanced premium tax credit applied directly to your monthly premiums. Eligibility and amount are based on the cost of marketplace premiums and your household size and income. If you do not take advantage of the advanced premium tax credit, you can still claim the refundable credit on your 2014 tax return. Cost-sharing subsidies may also be available for other health care expenses such as deductibles, copayments and coinsurance.

Whether you have a simple or complex situation, TaxACT makes it easy to navigate the tax implications of the Affordable Care Act anytime, anywhere. Prepare, print and e-file your federal taxes free at www.taxact.com/affordable-care-act. Visit the Health Insurance Marketplace for information about insurance options at www.healthcare.gov.


Mistakes Not To Make On Your Tax Return - (NAPSI) Posted: 3/15/2013

Five Tax Tips That Could Save You Money - (NAPSI) Posted: 3/15/2013

Help For Business Owners - (NAPSI) Posted: 3/15/2013

Uncle Sam Wants You To Save For Retirement - (NAPSI) Posted: 3/15/2013

A Simple Guide To Deductions - (NAPSI) Posted: 2/19/2013

Doing Your Own Taxes Easier Than Ever - (NAPSI) Posted: 2/19/2013

Investing In Equities In A Changing Tax Environment - (NAPSI) Posted: 2/19/2013

Protect Financial Information From Natural Disasters - (NAPSI) Posted: 2/19/2013

Advertisers

left Pause Right
 

 




About The Carmichael Times | Copyright Notice
Carmichael Times| Paul V. Scholl, Publisher
P.O. Box 14 | Carmichael, CA 95609-0014 | Telephone: 916-773-1111 | Fax Line 916-773-2999
Email: publisher@MPG8.com | Site Designed and Hosted by TheSiteBarn.com
ISSN#: 1948-1918

Like Us On Facebook Follow Us On Twitter