Seems like a reasonably non-partisan analysis. The new, welcomed Health Care Reform might have a small effect on a few of our unreimbursed deductions it seems. For years, our business has paid for our health insurance out of our heretofore1 meager profits, and despite nobody actually using the insurance to pay for anything, our premiums have skyrocketed each and every year. Last year alone, our Blue Cross Blue Shield premiums went up over 30%. Yikes.
- Couples earning more than $250,000 a year, and individuals earning more than $200,000 a year, will see an increase from 1.45% Medicare tax to 2.35% starting in 2013.
- Those with the higher income listed above would also see a 2.8% tax on unearned income (interest and dividends).
- Starting in 2018, a 40% excise tax would be imposed on the portion of employer-sponsored “Cadillac plans” that exceeds $10,200 a year for individuals and $27,500 for families.
- The threshold for deducting medical expenses (unreimbursed) would be raised to 10% of income from 7.5%, so many will lose the current tax deductions they tax advantage of.
- Starting this year, those who make use of indoor tanning facilities will pay a 10% tax.
- Starting in 2013, your tax-advantaged flexible spending account contributions will be limited to $2,500 for medical expenses.
[Click to continue reading How Will Health Care Reform Affect Your Wallet?]
the only real change I see is the 2.5% reduction in deducting health care costs we pay ourselves, which doesn’t translate to much real money, at least in our case, but I’m still scouring the details to see if there is anything else to worry about.Footnotes:
- we are still optimists – this year will the year we can set some aside for a rainy day. Yeah, this year [↩]