How to reform health care could affect your taxes this year

How to reform health care could affect your taxes this year -

Tax season is upon us, O joy! You may have noticed some changes on your final salary and some of that is due to taxes imposed under the health care reform legislation. Just so you're not left with surprises, here's a breakdown of some important changes to the Affordable Care Act, which could be reflected in your taxes.

penalty for abuse of HSA
under the health reform law, misuse of health spending accounts to pay for expenses non- qualified will result in a penalty of 20 percent. This provision came into force in 2011.

Tax additional Medicare
to take effect January 1, 2013, the new Medicare tax on wages affect high-income households and increases 0.9 percent for salaries over $ 0,000 for individuals and $ 250,000 for joint filers them. Employers are responsible for the implementation of this tax.

Medical Expense Deductions
The threshold for medical expense deductions increased by 2.5 percent in 2013. unreimbursed medical expenses are deductible by taxpayers less 65 as long as they exceed 10 percent of adjusted gross income (AGI) for the tax year. The original baseline to deduct medical expenses was 7.5 percent.

Cap on FSA contributions
pretax contributions to flexible spending accounts (FSAs) are limited to $ 2,500 effective January 1, 2013. This limit applies only to pretax contributions by a single employee, not a husband and wife together.

individual tax penalty
under the ACA, all Americans must have health insurance coverage by 2014 or be subject to a penalty tax when filing taxes in 2015. the sanctions begin to $ 95 per family member, or one percent of your income, whichever is greater. The penalty amount increases each year. In 2015, the penalty is $ 325 per adult (or 2.0 percent of family income, whichever is greater), and in 2016, it is $ 695 (or 2.5 percent of family income). After the sentence will be indexed to the inflation rate.

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