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The last day of the taxes under the new health care plan is today! I have gone through all of the specific provisions outlined in the new Health Care plan as they relate to taxes, and today I will finish up with the final three. They are charitable hospitals, information reporting and return information disclosure and with those we will wrap up this section. Don't forget however that you can come back to check out these new provisions at anytime and that you still have a few days to bring your tax issues into Check City for help from our team of professionals.  We will help you out with all of your Tax Preparation and get you the most out of your tax return.

Charitable Hospitals

The Health Care Act makes new requirements regarding hospitals, and more specifically, charitable hospitals.  This specific provision requires hospitals to conduct a community health needs assessment, adopt a written financial assistance policy and puts limitations on charges, and collection activities.


Information Reporting

The act also requires employers to disclose on each employee’s annual W-2 the value of the employee’s health insurance coverage sponsored by the employer, effective for tax years beginning after Dec. 31, 2010.

In addition, businesses must file an information return (e.g., a Form 1099) for all payments aggregating $600 or more in a calendar year to a single payee, including corporations (other than a payee that is a tax-exempt corporation). The provision is effective for payments made after Dec. 31, 2011.

Return Information Disclosure

The last provision, so far, of the act allows the IRS, upon written request of the Secretary of Health and Human Services, to disclose certain taxpayer return information if the taxpayer’s income is relevant in determining the amount of the tax credit or cost-sharing reduction, or eligibility for participation in the specified state health subsidy programs.

Upon written request from the Commissioner of Social Security, the IRS may disclose the certain limited return information of a taxpayer whose Medicare Part D premium subsidy, according to the records of the Secretary, may be subject to adjustment.

Here are links to the rest of the Taxes Under the New Health Care Act Posts and don't forget to visit us at Check City for all of your Tax Preparation needs.  

Taxes Under the New Health Care Act

When looking for common ground among Americans, you can always count on Taxes to draw people together, especially when it comes to popular opinions on how much we should be paying for them. Whether you are a republican, a member of the new Tea Party or even a democrat, chances are you will agree with the simple idea that no matter what your situation, taxes are costly.

In an article in a local Louisiana newspaper, the author points out that "No matter what our politics, we all wince every time we feel the hand of government reaching into our pockets."  We wince when we realize that there are some of us who are paying the government more than we pay for clothes and shoes and necessities of life each year.  These taxes are not all in the form of April 15th taxes paid to the government.  We are constantly paying taxes. Here are a few instances in which we pay taxes that may not immediately come to mind when considering our tax totals.

• Sales Taxes
• Individual Income Taxes
• Payroll Taxes
• Exise Taxes
• Corporate Income Taxes
• Property Taxes
• Motor Vehicle License Taxes
• Severence Taxes
• Estate Taxes
  

This is a rough list of taxes that Americans pay. There are more scattered throughout our economy and everyday situations and daily tasks and money ventures.  With new taxes being enacted every day in the form of Health Care Acts and Educational Taxes, etc. Americans have need to be even more concerned and involved in the political process.  Local elections are coming up in many places, take the opportunity to listen to the candidates and find out what their real stand is on important items of business, such as taxes, and then do your part as an American citizen by voting for who you believe is best suited to lead in your community or in behalf of your state.

Check City supports you with your taxes. We offer affordable Tax Preparation Services to help you get the most out of your tax return and with only a few days left to complete your taxes and submit them to the government, today is a great day to come visit us at one of our Check City Store Locations. Check City is also currently offering a discount of 50% off of our Preparation Services in order to help you finish your taxes in time. Visit us today!

We are almost done with the section on Taxes enacted under the new Health Care Act, today we will be covering flexible spending accounts, SIMPLE Cafeteria Plans for Small Businesses and the expansion of the adoption credit. There are only 6 provisions left (counting the three in this blog) and then you will have the full list of taxes and tax provisions that have been presented under the new Health Care Act. Lets start with the details of flexible spending accounts. Don't forget about Check City's great Tax Services. You still have 9 days to turn in your taxes, and with Check City's professionals, we can help you get exactly what you need and deserve from your tax return and we can still help you get them in on time. Bring in the coupon found online, and get 50% off of your Tax Preparation Services. 

Flexible Spending Account

The act mandates that the maximum amount available for reimbursement of incurred medical expenses of an employee, the employee’s dependents, and any other eligible beneficiaries, under a health flexible spending account for a year (or 12-month coverage) must not exceed $2,500. This takes effect for all tax years after 2012. 

SIMPLE Cafeteria Plans for Small Business (Taken from www.journalofaccountancy.com)

The Health Care act also "establishes a SIMPLE cafeteria plan for small businesses. Under this provision, an eligible small employer is provided with a safe harbor from the nondiscrimination requirements for cafeteria plans as well as from the nondiscrimination requirements for specified qualified benefits offered under a cafeteria plan, including group term life insurance, benefits under a self insured medical expense reimbursement plan, and benefits under a dependent care assistance program. Under the safe harbor, a cafeteria plan and the specified qualified benefits are treated as meeting the specified nondiscrimination rules if the cafeteria plan satisfies minimum eligibility and participation requirements and minimum contribution requirements." This is effective for all tax years after 2010. 

Expansion of Adoption Credit, Adoption Assistance Programs

"For 2010, the maximum adoption credit is increased to $13,170 per eligible child (a $1,000 increase). This increase applies to both non-special needs adoptions and special needs adoptions. Also, the adoption credit is made refundable. The new dollar limit and phase-out of the adoption credit are adjusted for inflation in tax years beginning after Dec. 31, 2010. Also, the scheduled sunset of EGTRRA provisions relating to the adoption credit is delayed for one year (i.e., the sunset becomes effective for tax years beginning after Dec. 31, 2011).

For adoption assistance programs, the maximum exclusion is increased to $13,170 per eligible child (a $1,000 increase). The new dollar limit and income limitations of the employer-provided adoption assistance exclusion are adjusted for inflation in tax years beginning after Dec. 31, 2010. The EGTRRA sunset of provisions relating to adoption assistance programs is also delayed for one year (i.e., the sunset becomes effective for tax years beginning after Dec. 31, 2011)."

The end of tax time is drawing ever closer, and Check City wants to remind you that we have excellent Tax Services available to help you out with all of your Tax Preparation needs. We also have a special running through the end of tax time, for 50% off of our Tax Services. With Tax Season coming to an end we are also starting to wrap up our ten part series on Health Care taxes as well as the tax blogs we have been using to keep you informed and up to date on all of the current tax issues.  So, with only a few days left to file your taxes, visit Check City Online or one of our many Store Locations to speak with one of our experienced tax professionals right away.

This section of the Health Care Tax provisions will focus on Excise Tax on High-Cost Employer Plans, Taxes on HSA Distributions and Taxes on Indoor Tanning Services.

Excise Tax on High-Cost Employer Plans

One of the sections in the new Health Care Act, imposes an excise tax on insurers if the total value of employer-sponsored health insurance coverage for an employee (including, for purposes of the provision, any former employee, surviving spouse and any other primary insured individual) exceeds a threshold amount. The tax then is equal to 40% of the sum of the amount for which the threshold was exceeded. For 2018, the threshold amount is $10,200 for individual coverage and $27,500 for family coverage, multiplied by the health cost adjustment percentage and increased by the age and gender adjusted excess premium amount.  This provision takes effect for tax years after December 31, 2017. 


Tax on HSA Distributions

The additional tax on distributions from a health savings account (HSA) or an Archer medical savings account (MSA) that are not used for qualified medical expenses is increased to 20% of the disbursed amount. This tax is applicable for all health years after 2010. 

Tax on Indoor Tanning Services

The act also imposes a 10% tax on amounts paid for indoor tanning services. Similar to a sales tax, the tax will be collected from the person tanning when payment for the tanning services is made. This is for any service performed after July 1, 2010 and so far is the provision to be enacted the soonest.

These taxes and provisions that have been made, are meant to improve the number of people in the United States that can have affordable health insurance.  With the provisions, it is also meant to limit practices that are harmful to the body.  To help hault and slow the use of these health affecting items and services, the government has imposed taxes and tax provisions to make them less appealing.   Don't forget that Check City can help you figure out all of your Tax Preparation needs. Visit us today to get started. 

Part 7 of the mini-series on tax provisions under the new health care act discusses something that affects all tax payers, and should be more prominent and important in the minds and eyes of consumers; Fees on Health Plans.  Under the new provision, and more specifically section 4375, a fee will be imposed on each specified health insurance policies.  This fee is small, but customers should be made aware of it in order to plan for the extra fee and also, so that they know the steps being taken in the taxation of their Health Plans, after all Americans fought long and hard to have representation and a better understanding of their taxation system.

The Fee Amount:

The fee that is to be charged is equal to 2 dollars (1 dollar for policies ending in the year 2013), multiplied by the average number of lives covered under the policy. The issuer is liable for the payment of the fee.  For any policy beginning after September 30, 2014 the dollar ammount is equal to the sum of

1. the dollar amount for policies ending in the prior year plus
   
2. an amount equal to the product of (A) the dollar amount for policy years ending in the preceding fiscal year, multiplied by (B) the percentage increase in the projected per capita amount of National Health Expenditures, as most recently published by the Secretary before the beginning of the fiscal year.

These fees are for any plan, policy or portion of a plan or policy that begins on or after October 1, 2012.

With all the additional fees and other tax stresses coming at you in the coming years, it is important that you understand tax policy now, so that it will be easier to adapt in the future.  At Check City, our Tax Professionals can help you sort out all of your tax questions and issues.  Bring in your 1040 to us before it's too late, along with the 50% off coupon, found on the Check City Website, and our tax professionals can help you figure out your taxes, and get you every penny, nickle and dime you deserve from your tax refund. Visit Check City Online or in one of our Store Locations today to get started. 

Part 6 of the multi-part series on tax provisions under the new Health care act includes Additional Hospital Insurance Tax on High-Income Taxpayers and Employer Responsibility.  The first, Additional Hospital Insurance Tax on High-Income Taxpayers, is what it sounds like, higher income taxpayers will be charged a higher hospital insurance tax. As for employer responsibility, when an employer doesn't provide adequate or unaffordable health insurance they will be charged a penalty for failing to provide this to employees.

Additional Hospital Insurance Tax on High-Income Taxpayers:

With the new health care act, the employee portion of the hospital insurance tax part of FICA, currently amounting to 1.45% of covered wages, is increased by 0.9% on wages that exceed a threshold amount. The additional tax is imposed on the combined wages of both the taxpayer and the taxpayer’s spouse, if filing a joint return. The threshold amount is $250,000 in the case of a joint return or surviving spouse, $125,000 in the case of a married individual filing a separate return, and $200,000 in all other cases.  Those who are self-employed must pay the same additional hospital tax insurance.  This applies for for self-employment income in excess of the threshold, as stated above.  This begins for tax years after 2012. 

Employer Responsibility:

The new Health Care Act also gives provisions for employer responsiblity concering responsible and affordable health care for employees. Not only must they provide affordable and responsible health care, but they must do so for all full-time employees. The employer must provide benefits of at least 60%, or they will need to pay a penalty for any employee that is certified with the employer as having purchased health insurance through a state exchange. This applies to all employers who have more than 50 full-time employees during the previous calendar year.

(Taken from www.journalofaccountancy.com) "An applicable large employer who fails to offer its full-time employees and their dependents the opportunity to enroll in minimum essential coverage under an employer-sponsored plan for any month is subject to a penalty if at least one of its full-time employees is certified to the employer as having enrolled in health insurance coverage purchased through a state exchange with respect to which a premium tax credit or cost-sharing reduction is allowed or paid to such employee or employees. The penalty for any month is an excise tax equal to the number of full-time employees over a 30-employee threshold during the applicable month (regardless of how many employees are receiving a premium tax credit or cost-sharing reduction) multiplied by one-twelfth of $2,000.

An applicable large employer who offers, for any month, its full-time employees and their dependents the opportunity to enroll in minimum essential coverage under an employer-sponsored plan is subject to a penalty if any full-time employee is certified to the employer as having enrolled in health insurance coverage purchased through a state exchange with respect to which a premium tax credit or cost-sharing reduction is allowed or paid to such employee or employees."  This provision is only effective for tax years beginning after 2013.

That being said, Check City can help you with your Tax Preparation whether you decide to do them online or use the mail in method.  We currently have 50% off all of our Tax Services when you print off and bring in the coupon found on the Check City Online Tax Preparation Page. Visit one of our Store Locations or Check City Online to get started saving with our professional services today. 
 

Part five in the series of Tax Provisions under the new Health Care Act includes the Medical Care Itemized Deduction Threshold and Cafeteria Plans. The first, medical care itemized deduction threshold, is an increased itemized deduction for unreimbursed medical expense.  The second is a provision that will make it possible, if you are qualified to receive benefits from a cafeteria plan.  These provisions begin for the tax years after 2012 and 2013 respectively, so you will have to wait a few years for these changes to take effect, but as they do, these new benefits may help you and your family. 

Medical Care Itemized Deduction Threshold (Excerpts Taken from www.journalofaccountancy.com)

The threshold for the itemized deduction for unreimbursed medical expenses is increased from 7.5% of AGI to 10% of AGI for regular income tax purposes. This is effective for tax years beginning after Dec. 31, 2012, except that for 2013, 2014, 2015 and 2016, if either the taxpayer or the taxpayer’s spouse turns 65 before the end of the tax year, the increased threshold does not apply and the threshold remains at 7.5% of AGI.

Cafeteria Plans

The act makes premiums for coverage under a qualified health plan offered through an exchange a qualified benefit under a cafeteria plan. This provision applies only to cafeteria plans established by a small employer that elects to make all its full-time employees eligible for one or more qualified plans offered in the small group market through an exchange.

This provision is effective for tax years beginning after Dec. 31, 2013.

If you haven't done your taxes yet, there's still some time left.  Visit Check City Online or in one of our many Convenient Store Locations to get 50% off of your Tax Preparation from our Tax Professionals. 

I have already discussed some of the provisions in the new Health Care Act enacted on Sunday March 21, 2010. Today I will tell you about a few more provisions and how they affect your insurance carrier, as well as you.  The first one I will be discussing is the Tax-Exempt Health Insurers Policy that may allow for the creation of non-profit health care companies and organizations if certain specific requirements are met. I will also discuss reporting requirements under the new Health Plan. This provision just requires that insurers report coverage of information to the individual they cover and the IRS each year.

Tax-Exempt Insurers

This program will be monitored by the Department of Health and Human Services and will provide for the creation of non-profit health insurers based on specific requirements.  If an insurer is receiving federal grants or loans they would be exempt from any federal taxes within the time period, and for as long as the insurance company complies with the terms of the program. 

Reporting Requirements

This is for any insurers, or self insured who give minimum coverage to any individual during a calendar year.  They must report this coverage to the individual or individuals they cover as well as the IRS at the end of each year. They are required to report five things.

1. They must report the Name, address & Tax I.D. of the primary insured as well as others insured under that same policy
2. Dates during which the insured was covered by that plan during the calendar year
3. Whether the coverage is a qualified health plan offered through an exchange
4. The amount of any premium tax credit or cost-sharing reduction received by the individual with respect to coverage
5. Other information as the Secretary may require

This requirement will be put into effect for all tax years after 2013.  Even though most of these credits and requirements won't be put into place for a few years, taxes can still be confusing right now.  You still have a little time to figure them out and get them turned in. Visit Check City Online or one of our many Store Locations to get help with your taxes. Right now, we have a special promotion going on. Get online and print off our 50% off coupon.  Bring it into one of our stores to get 50% off of our Professional Tax Services.

In yesterdays post I discussed briefly a few of the changes that are being made to taxes, via the new Health Care Act of 2010. I also talked about The Reconciliation Act, which was also passed on Sunday.  Today I will tell you about the Premium Assistance Credit, what it means, and who will be hurt or benefited by it.  As a quick overview, this provision is a tax credit that will benefit those who are purchasing state funded health care, and hurt those with high income.

"The act provides for refundable tax credits that eligible taxpayers can use to help cover the cost of health insurance premiums for individuals and families who purchase health insurance through a state health benefit exchange" according to the Journal of Accountancy. The plan lets those who are eligible enroll in a program they call an exhange.  They report their income to the exchange and then based on the income provided, the individual will receive a premium assistance credit paid directly to the insurance plan in which this specific person is enrolled. This individual will then only be responsible to pay what is left over after the premium assistance credit has been paid to the insurance company. 

How can I Determine if I'm Eligible? (Excerpt taken from the Journal of Accountancy)

"Eligibility for the premium assistance credit is based on the individual’s income for the tax year ending two years prior to the enrollment period. The premium assistance credit is available for individuals (single or joint filers) with household incomes between 100% and 400% of the federal poverty level (with the family size involved) who do not receive health insurance through an employer or a spouse’s employer. The credit amount is determined by the Secretary of Health and Human Services, based on the percentage of income the cost of premiums represents, rising from 2% of income for those at 100% of federal poverty level for the family size involved to 9.5% of income for those at 400% of federal poverty level for the family size involved." The bad news however is that this credit will not be available until after 2013 because of the changes that must be made in order for it to run properly.

Tax time is coming to an end, are you feeling the heat? Check City offers you last minute tax preparation help whether you are filing online or by mail. You can come into one of our many Check City Locations or just visit us online to get the full details.  We are currently also offering 50% off of our Tax Services when you go online and print off the coupon.  Print one off today and receive great discounts on your Tax Preparation Services.  

The new Health Care Act also known as the  Patient Protection and Affordable Care Act passed on Sunday March, 21, 2010 as was already stated in a previous post, but what does that mean for our tax system and when will we have to start figuring it all out?  I wrote a little bit earlier this week about what this new bill means to consumers, but want to speak more in depth now about how it will specifically affect you and what exact changes will be made to taxes. Over the next few days I will be posting some of the details of the tax provisions included in the bill. Today, I want to talk specifically about the Reconciliation Act. 

Because of the hype of the new health care act, many people are unaware that another act also passed on Sunday called The Reconciliation Act of 2010.

What is The Reconciliation Act and What Changes Does it Make?

The Reconciliation Act contains many tax items and according to the journal of accountancy includes "extending the general exclusion for reimbursements for medical care expenses under an employer-provided accident or health plan to any child of an employee who has not attained age 27 as of the end of the tax year and codifying the economic substance doctrine." They also say that the reconciliation act has not yet passed in the senate.  I discussed this a little in the previous article about Health Care reform, but many don't know that it is not directly from the Health Care Act.

Visit our blog over the next few days to learn about the other tax provisions which include the following:

• Premium Assistance Credit
• Small Business Tax Credit
• Exise Tax on Uninsured Individuals
• Tax Exempt Health Insurers
• Reporting Requirements
• Medical Care Itemized Deductions and Cafeteria Plans
• Additional Hospital Insurance Tax on High Income Payers
• Employer Responsibility
  
• Fees
• Exise Tax on High-Cost Employer Plans
• Tax on HSA Distributions
• Tax on Indoor Tanning and Flexible Spending Accounts
  

and others which will be discussed in more detail as the tax D-Day gets ever closer.   Tax Day is coming up quick. In just a few weeks your taxes will be due, have you started them? An even better question is have you finished them yet? If not, you may want to consider filing for a Tax Extension or coming into one of the many Check City Locations across the country. We offer affordable Tax Preparation services.  We can help you discover whether it would be more beneficial for you to itemize deductions or to take the standard deduction as well as help you get the most out of every penny.  Our Tax Professionals have been in the financial industry for over 20 years and they know their stuff. Visit us Online or In Store today to get started, or finish up with your taxes.