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.

/GROCO
Posted in

Not Living on the Earth? You Still Have to Pay Your Taxes on Time

You gotta hand it to the IRS for being thorough. They’ll leave no stone unturned in an effort to make sure that every taxpayer files their return. That’s even true of very big stones, otherwise known as asteroids. In other words, even if an astronaut wanted to hide behind an asteroid or a moon rock,…

With Gas Prices Down, Could Gas Taxes Be Going Up?

Rich or poor, young or old, no one likes high gas prices – with the possible exception of oil and gas companies. In any case, the recent drop in gas prices around the country has no doubt brought some relief to just about everyone in America, including big corporations that own large fleets of vehicles.…

Hello? Is This Really the IRS, or Just a Scam?

No one enjoys getting a call from the IRS, but getting a call from someone who claims to be from the IRS, but who is really just a scammer, is even worse. However, according to the country’s top tax agency, that is exactly the kind of sophisticated and elaborate scam that has been going on…

United States and Singapore Buddy Up on Tax Evasion

For those who are still not convinced that the United States is serious about tracking down tax dodgers who are trying to hide money in offshore accounts, here’s one more piece of evidence that might change your mind. In a deal announced last week, the country of Singapore says it has come to terms with…