In 2010, Congress passed the most sweeping changes in Health Care in American history as a result of President Obama’s Health Care Act (ACA). The changes have been slowly coming until this year when the cascade of changes became a waterfall of events.
2013 changes include major reductions in allowable medical tax deductions, new penalty surtaxes on interest and dividend income and an additional new tax on higher income Americans.
In 2014, the waterfall becomes a deluge of change with new requirements for all Americans to obtain health insurance or pay a penalty, combined with a new tax credit for many Americans to help them pay for health insurance. The calculations to determine the credit are intricate and when combined with the 2013 tax changes will overwhelm many average Americans who have not adequately planned for the changes.
Businesses are not exempt from changes in 2014 either. For the last several years, small business has been provided with a theoretical 35% credit to provide health insurance to employees. The credit goes to 50% with these new changes but the complexity of the calculation continues and increases with the requirement that small businesses cancel existing coverage and obtain new coverage from newly implemented insurance exchanges.
In one of the classic examples of poor design, the IRS announced in May that less than 10% of expected small businesses took the credit because the cost of calculating the credit was greater than the credit itself! Congress also says that large employers (those with 50 or more full time equivalent employees) may be subject to onerous penalties of up to $2,000 per employee, per year for failure to provide adequate employee health coverage. Congress has not determined how employers will pay for the coverage, so tax planning for employers is not necessary, it is mandatory for survival. Historical tools of planning by using multiple entities, generally do not work for businesses because of the obscure controlled group rules, so again, planning is mandatory.
After much research into the new rules and tax impacts to both businesses and individuals, Bob Jennings, CPA, CFP, EA of TaxSpeaker.com, has developed an in-depth three part course to assist tax preparers, business owners and individuals understand the upcoming changes and implement strategies. The courses are Guide to Surtaxes, 2013 Changes and Tax Planning, Individual Insurance Mandates, Penalties and Credits and Business Aspects of the Health Care Mandate. The courses are available on TaxSpeaker.com individually and also combined for a full day of learning under the title of Tax Aspects of the Health Care Bill. Available in Live Webcast, Live Seminar and self-study formats, every tax preparer, business owner and individual can benefit and are urged to educate themselves on all changes taking place in 2013 and 2014. Tax Preparers earn 8 hours CPE.
Cleveland July 9, 2013 8 am to 4 pm
Indianapolis July 10, 2013 8 am to 4 pm
Salt Lake City July 17, 2013 8 am to 4 pm
Ft. Collins August 23, 2013 8 am to 4 pm
Live Webcasts are also available. Please check TaxSpeaker.com for dates and times.