Obamacare’s Tax Hike Train Wreck – Handy summary of some of the new taxes we are going to have to deal with, from Americans for Tax Reform.
Archive for the ‘ObamaCare’ Category
A sickening batch of new taxes…
Posted by taxguru on May 1, 2013
Posted in ObamaCare, TaxHikes | Comments Off on A sickening batch of new taxes…
From Tax Update Webinar
Posted by taxguru on December 17, 2012
This year, I intentionally scheduled almost all of my annual 40 hours of CPE for as late in the year as possible, with the hope that some settlement of the open tax issues would be wrapped up by now. Unfortunately, as we know all too well, nothing has been done by our incompetent rulers in DC and we still have a ton of uncertainty as to what the rules will be for 2012, 2013 and onward.
Once again, I am using CPE Link for most of my live instruction CPE. I just finished the first four hour section of the 2012 Tax Update by Vern Hoven and he had to hedge a lot, with warnings that several tax provisions that have technically expired as of 12/31/11 may be extended retroactively for 2012 by the bozos in DC, hopefully before the end of the upcoming Tax Season.
As we went through the manual and slides, I found a few of them that I wanted to share here with my readers.
IRS Audit Exposure
This first one is from the IRS’s official report of their examination coverage. It illustrates that the higher your AGI is, not only will you be hit with higher taxes and lose several deductions and credits, but the bulls-eye on your back for IRS harassment will grow much larger. Steps to keep your AGI down, such as working with a C corp, make all the more sense.
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| From Tax Info |
New ObamaCare Taxes
We covered some of the numerous new taxes created by ObamaCare that we will soon be dealing with. One of them is a new Hospital Insurance (HI) tax on the wages and self employment income of the evil rich and is summarized nicely in this table.
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| From Tax Info |
Posted in NewTaxLaws, ObamaCare, TaxHikes | Comments Off on From Tax Update Webinar
New ObamaCare Taxes
Posted by taxguru on October 4, 2012
I was just reviewing the latest update to the very useful Tax Corresponder program from CFS and noticed this handy recap of upcoming new taxes that will be coming into play soon.
The U.S. Supreme Court ruled on June 28, 2012, that President Obama’s Health Care Act is constitutional and that the government can and will require individuals to purchase health insurance. This provision takes effect January 1, 2014, and there are other provisions that phase in January 1, 2013.
The health insurance provision means that beginning January 2014, non-exempt U.S. citizens and legal residents who are required to file a tax return are required to have health insurance. Individuals who fail to maintain minimum essential coverage are subject to the following penalty(s) per uninsured household adult: 2014 – the greater of $95 or a 1% penalty of the amount of household income that is over the threshold amount of income required for income tax return filing; 2015 – $325 or 2% penalty; and 2016 and after $695 (indexed for inflation) or 2.5% penalty.
There are three additional and potentially expensive provisions to this law that take effect in 2013:
1. If you are single and your compensation (salary, wages, self-employment income) is $200,000 or more ($250,000 for married couples), you will pay an additional 0.9% tax on your earned income. What can you do about this? Consider accelerating a bonus or other income that is scheduled to be paid to you in 2013 by rescheduling it to be paid in 2012.
2. There is a 3.8% tax on investment income (interest, dividends, net rental income, capital gains, etc.) for individuals, estates, and trusts. The tax is 3.8% of the lesser of your investment income or your adjusted gross income that is over the threshold amounts of $200,000 for singles and $250,000 for married couples. For estates and trusts, the tax is 3.8% of undistributed net investment income or the excess of AGI over the dollar amount at which the highest estate and trust income tax bracket begins. For 2012, that estate/trust bracket begins at $11,650. What can you do about this provision? Consider accelerating this type of income from 2013 to 2012. If you are managing an estate or trust, consider distributing net investment income to the beneficiary(s) each year.
3. You probably recall that if you itemize your deductions, you can deduct any medical expenses that exceed 7.5% of your adjusted gross income. This changes with the Health Care Act because the medical deduction threshold will increase from the current 7.5% of your adjusted gross income to 10% for taxpayers under the age of 65. In 2017 it will be 10% for all taxpayers regardless of age. To avoid the increased AGI threshold, try to lump the payment of medical expenses into 2012 instead of paying them in 2013.
Posted in ObamaCare, TaxHikes | Comments Off on New ObamaCare Taxes
Posted by taxguru on September 18, 2012
80 million hours needed to tackle Obamacare tax rules – An insane way to create more jobs in the private and public sectors. We need to keep the pressure on Romney to repeal all of ObamaCare.
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2013 Investment Surtax
Posted by taxguru on September 12, 2012
Bob Jennings explains the new 3.8% investment tax that starts to apply to the Evil Rich in 2013 if ObamaCare isn’t repealed.
Unfortunately, with Romney wimping out on his opposition to ObamaCare, the odds of getting rid of this new insane anti-investment tax are getting slimmer by the day.
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| From BlogComix3 |
Posted in Jennings, ObamaCare, Romney, SoakTheRich, TaxHikes, video | Comments Off on 2013 Investment Surtax
How involved will IRS be in our healthcare?
Posted by taxguru on September 12, 2012
IRS: Agents will not be involved in tax audits, pursuing Americans without health insurance
IRS: Agents Won’t Be Enforcers of Obamacare Mandate – The confusion continues.
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| From Blog Pix |
Posted in IRS, ObamaCare | Comments Off on How involved will IRS be in our healthcare?
Explaining ObamaCare
Posted by taxguru on September 10, 2012
We’re going to be gifted with a healthcare plan we are forced to purchase, and fined if we don’t, which purportedly covers at least 10 million more people, without adding a single new doctor, but provides for 16,000 new IRS agents, written by a committee whose chairman says he doesn’t understand it, passed by a congress that didn’t read it but exempted themselves from it, and signed by a president who smokes, with funding administered by a Treasury chief who didn’t pay his taxes, for which we will be taxed for four years before any benefits take effect, by a government which has already bankrupted Social Security and Medicare, all to be overseen by a Surgeon General who is obese and financed by a country that’s broke.
So, what the blank could possibly go wrong?
Posted in ObamaCare | Comments Off on Explaining ObamaCare
Posted by taxguru on August 3, 2012
Facebook Stock Crash Hoses California’s Tax Revenue – In the Bizarro world of government, they love to “balance” their budgets with completely unrealistic overly optimistic assumptions about the size of revenues. That’s how the Clinton gang conjured up an imaginary budget surplus for his last year. They assumed the stock market would continue to grow at 20% per year, when in actuality, it crashed.
Governor Moonbeam has already said that his “balanced” budget is contingent on the assumption that voters will approve two large tax increases in November. Has a betting pool been set up to predict when the PRC declares bankruptcy?
Republicans grill IRS commissioner on health care – The fun and games with ObamaCare are just beginning. If it’s not repealed, those of us in the tax profession will have to become ensnared in its thousands of pages of rules and regulations, even though none of us had any desire to go to medical school.
Posted in ObamaCare, StateTaxes | Comments Off on
Posted by taxguru on July 28, 2012
CBO: Obamacare levies $1 trillion in new taxes – This shouldn’t surprise anyone. Our rulers can’t do anything without soaking us for even more taxes. Trillions are now the new Billions when discussing government finances.
Tax Guru - Ker$tetter Letter 