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.
Rate Yourself Using Debt-to-income Ratio
Rate Yourself Using Debt-to-income Ratio By Linda Stern WASHINGTON (Reuters) – If you were a company, what would the analysts be saying about you? Most investors use financial ratios to grade the companies the average debt to income ratio by age buy and sell, but they rarely subject their own finances to the same…
Taxpayers Have Until April 17 to File and Pay
Taxpayers Have Until April 17 to File and Pay Taxpayers across the nation will have until Tuesday, April 17, 2007, to file their 2006 returns and pay any taxes due, the Internal Revenue Service announced today. Taxpayers will have extra time to file and pay because April 15 falls on a Sunday in 2007, and…
IRS FIN 48
IRS FIN 48 Background As a result of the impending effective date for the application of Financial Accounting Standard Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes, of FASB Statement 109 (FIN 48), some taxpayers may wish to request a greatly accelerated examination and resolution before the end of their current financial statement…
Where Should You Retire if You’re Wealthy?
Where Should You Retire if You’re Wealthy? Best Places Retire in USA if You’re Wealthy You’ve spent your lifetime accumulating wealth through your employment and other business endeavors. You have been successful at what you do and now the time has finally come when you’re ready to ride off into the sunset, so-to-speak. It’s time for…