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New Taxes You Will Pay for Obamacare

by | Dec 5, 2012 | Estate Planning

Did you think Obamacare would be free? These are some of the new taxes you will be paying to pay for Obamacare:

-A 3.8% surtax on “Investment Income” when your adjusted gross income exceeds $200,000 ($250,000 for joint-filers).

-A .9% surtax on Medicare taxes assessed for those making $200,000 or more ($250,000 for joint filers).

-Flexible Spending Account contributions capped at $2500.

-Itemized deduction level for medical expenses is going up to 10% of AGI.

-The penalty on non-medical withdrawals from Healthcare Savings Accounts is now 20%.

-A tax of 10% on indoor tanning services.

-A 40% tax on “Cadillac Health Care Plans” starting in 2018.

-A tax that eliminates the ability to pay for over-the-counter medicines from a pre-tax flexible spending account that started in January 2011.

-A penalty tax for those who do not buy health insurance that will phase in from 2014 to 2016.

As always, be sure to consult with yourlegal and financial professionals.

Written by Robert J. Penny.

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