Obamacare and Your Taxes

Obamacare & Your Taxes The ACA raises taxes in dozens of ways, what do you get in return? ndivicual MANDATES Employer LARGE EMPLOYERS MUST INSURE FULL TIME EMPLOYEES BY 2014 BY 2015. GET HEALTH COVERAGE GET EXEMPTION O PAY FINE OR PAY A PER EMPLOYEE FINE PREMIUM TAX CREDITS checklist O1. Are you within 400% of the Federal Poverty Level? FAMILY SIZE 100% FPL 400% FPL $11,490 $45,960 2 11 $15,510 $62,040 3 t11 $19,530 $78,120 41 t1t $23,550 $94,200 5 $27,570 $110,280 6 $31,590 $126,360 $35,610 $142,440 $39,630 $158,520 M 2. Are you ineligible for: 3. Are you ineligible for health insurance through: Medicare Medicaid Children's Health Insurance Program Employer Government Plan 4. Did you buy health insurance through the marketplace? Then take your premium tax credit... UP FRONT O AS A TAX RETURN SHARED RESPONSIBILITY PAYMENTS Not getting insurance? Pay the fine. 2014 2015 2016 whichever $2085 max fine is greater 2% family income 2.5% family income 1% family income $975 max fine $695 per adult $285 $95 max fine, per adult $325 per adult $162.50 per child $347.50 per child $47.50 per child HIGH EARNERS Medicare Tax Increase Are you a high earner? $250,000+ Married filing jointly $200,000+ single, head of household, dependent Then add $125,000+ 0.9% Married filing singly additional Medicare tax 00 $150,000 = $500,000 = $220,000 = $225 $2,250 $180 in new taxes in new taxes in new taxes Taxes on Investment Income Do you have: SOLD! Interest Gain from sale of investment real Dividends Income from or passive business Income from commodities trades estate FOR RENT 2$ Non-qualified annuities Royalties Rental income Capital Gains whichever is less INCOME OVER THRESHOLD or INVESTMENT INCOME is taxed by wages the new $350,000 Married filing jointly examples 3.8% $100,000 Medicare tax over threshold $5,000 wages over threshold $160,000 Married filing singly $35,000 over threshold With all the 00 new taxes attached to the ACA, be prepared, & consult a tax $25,000 stock sale income $5,000 rental property income $80,000 royalties professional. 3.8% of $25,000 = $950 3.8% of $80,000 = 3.8% of $5,000 = $3,040 $190 in new taxes in new taxes in new taxes Accounting-Degree.org THRESHOLDS examples