The Supreme Court’s recent decision to uphold the 2010 healthcare reform law has moved the fight from the courtroom to the polling stations. Healthcare reform will be a hot topic in the upcoming Presidential election, and ultimately the status of the Patient Protection and Affordable Care Act could change based on which political party takes control of the White House and Congress.
In the meantime, there are tax provisions that will soon go into effect – and others that went into effect in recent years and will remain in effect at least through the election. Below is a list of provisions that are likely to affect our clients. For a more-detailed description of the tax implications for businesses, click here. For a description of the tax implications for individuals, click here.
Among the items that were upheld by the Supreme Court’s decision are:
- Increased Medicare tax on high-income individuals, including a tax on investment income and an increase in the hospital insurance tax
- Increased penalty on individuals who use distributions from a Health Savings Account for non-medical expenses
- Limit Flexible Spending Accounts to $2,500 per year
- Increase in the threshold for itemized deductions of unreimbursed medical expenses
- Tax credit for qualified small businesses that provide healthcare coverage for employees (went into effect in 2010)
Additional provisions are scheduled to go into effect in 2014 and beyond – pending the results of the upcoming elections. For more information on the topics listed above or any other tax and accounting provisions of healthcare reform, contact a Barnes Dennig representative at (513) 241-8313.