Tax Season Got You Down? Blame Obamacare

What do you hate the most about taxes? Is it the simple fact that you have to file them? Is it the fear of being chosen for an audit? Is it all the confusing changes on tax laws and policies that drive you nuts? There are a lot of reasons people hate dealing with taxes, but this year, there could be a new number one reason for aggravation. Obamacare!

Although it’s actually called the Affordable Care Act, Obamacare, as most people know it, is sure to bring a lot of confusion and frustration this tax season. It will affect just about everyone in some way, but some more than others. Three aspects of your return in particular could feel the effects of Obamacare.

First and foremost, there is the individual penalty if you don’t have insurance. Here’s how the penalty works. If you don’t have insurance then you will pay the greater of the these two amounts:

  • 1 percent of your annual household income, or
  • $95 per person in the household for the entire year ($47.50 for those under 18).

Obamacare will also affect the Net Investment Income Tax, because as part of the plan there is a new 3.8 percent tax that will be added on to the capital gain rate. This 3.8 percent is applied to either the amount by which your adjusted gross income exceeds a certain tax threshold or to your net investment income; whichever is less.

Lastly, the Premium tax credit will also see the effects of Obamacare. Anyone who had health insurance via a Health Care Exchange could see the government subsidize his or her premiums.

So there you have it. Like it or not, Obamacare is probably going to affect you this year no matter what tax boat you’re in. Of course, we can help you get through the murky waters of the Affordable Health Care Act and ensure that you get the most from your return. Just call us at 1-877-CPA-2006 or click here.

Posted in
Lee Brower

Empowering Leaders of Family Businesses

Transcript: Alan Olsen Welcome to American Dreams. My guest today is Lee Brower. Lee, welcome to today’s show.   Lee Brower Alan, I’m delighted to be here. Thank you for having me.   Alan Olsen Oh, I’m excited for this session night ugly. I’ve sat in classes with you. Management Consulting techniques, strategic planning. And…

Redefining Social Responsibility In The Financial Industry: Our Conversation With David Reiling

See David’s Recent Interview with Alan Olsen: https://www.youtube.com/watch?v=ztdtPfH9RAk&t=2s David Reiling is an accomplished social entrepreneur and innovator in the field of community development finance and financial inclusion. He has been the Chief Executive Officer of Sunrise Banks since 1995, and since then, he has successfully transformed Sunrise Banks into a leading player in the industry,…

David Reiling

Banking As A Social Entrepreneur

Transcript: Alan Olsen Welcome to American Dreams. My guest this week is David Reiling. David, welcome to today’s show.   David Reiling Thanks, Alan. Great to be here.   Alan Olsen So David, you have a very unique background. You know, tell us a little bit about the, the picture your your background in, you…

The Economic Influence of the NBA All-Star Weekend

NBA All-Star Weekend Economic Influence

Written by Ryan Hickman   If you have walked around downtown Salt Lake City recently, you’d come across ginormous signs advertising the NBA. But not just advertisements for the local Utah Jazz, but for the annual pinnacle of NBA events: the 2023 All-Star Game. This annual event envelopes whichever city hosts the events, which include…