This week is Passover and Easter Week. We’ve been dark for a couple of days due to the holy days. So you didn’t get TaxQuips podcasts on Tuesday and Wednesday. Don’t worry, it’s not your mail server.
Southern California has been getting storm warnings from our meteorologists all week. Yet, mornings still dawn bright and sunny, with nary a cloud in sight!
This morning, since 0-dark 100, I have been trying to compile that summary of the Health Care Bill for you. Whew! I don’t know if I’ve got it right…but I have created a spreadsheet, summarizing the provisions that affect you.
You can find it here: https://taxquips.com/1/Summary_TaxMama.xls
I have guessed at the effective date of some of the provisions. The information was based ob the CCH reports and analysis of the following bills:
Health Care and Education Reconciliation Act of 2010 (H.R. 4872)
The Patient Protection and Affordable Care Act (P.L. 111-148)
Health Care and Education Tax Credits Reconciliation Act of 2010
What are some of the more important things you should know?
Especially when it comes to things you might miss?
Effective right now:
1)1099-MISC – we will have to issue them to everyone – corporations, as well as individuals who is paid $600 or more. Frankly, this makes it easier for folks who aren’t sure whether or not to issue a 1099.
2) The adoption credit is now a refundable credit up to $13,170 – through 2011. That means, you get the money, even if you didn’t pay in any taxes – like the EITC and Homebuyers Credits.
3) Employers with less than 25 full-time employees can get a tax credit for up to 35 percent of their contribution toward the employee’s health insurance premium.
Coming to a tax return near you – soon:
Starting in 2011
1) Raised the age of dependents to 26 – your depdendent children up to age 26 can be covered by your employer plan – and you may use their medical deductions on your personal tax return.
2) W-2s will start showing your health benefits
3) Only Doctor-prescribed medicines will be covered by FSAs/HSAs
1) Nonqualified distributions from health savings accounts (HSAs) will cost 20%
2) Nonqualified distributions from Archer MSAs will cost you 20%
1) There will be a new cap on Flexible Spending Accounts – $2,500
2) Investment income will be subject to Medicare taxes.
3) Estates and Trusts will also face the Medicare taxes!
4) Medical expense exclusion on Schedule A rises to 10% from 7.5% – unless you are age 65 or older.
There’s more – read the details – and if you have any improvements or corrections, please make them and send me your Excel file.
(Incidentally, if you don’t have spreadsheet software, you can pick it up an entire suite of tools at no charge here – https://www.openoffice.org/)
AccountingWeb.com – I haven’t had time to write anything this week. But I will probably write something more about the Health Care Bill.
This week TaxMama’s TaxWatch gives you your April To Do List.
In IRS News today you will learn all about penalties, and contributing to IRAs.
Remember, IRS is seeking volunteers for the Taxpayer Advocacy Panel. https://www.irs.gov/newsroom/article/0,,id=220433,00.html
APRIL SPECIAL – Tax Professionals interested in taking the EA Exam. The first 50 people to sign up before April 15th will get free TaxMama Family Memberships. You will also be getting this handy dandy tote to hold all your books, notes and discs.
In today’s Money Funny you learning about the cost of tech support.
In TaxQuips this week we learn about Network Marketing and Unemployment income, and whether or not your business can write off your dog.
As always, we love your feedback, opinions and ideas.
You are what makes all this fun – and interesting!
Please use the Comments link online.
Hugs from your favorite TaxNerd,
Eva Rosenberg, EA
Your TaxMama® is watching…out for you.
04/15/2010 Last Day to set up and fund IRAs and Roth IRAs for previous year
04/15/2010 Individual Personal Returns due
04/15/2010 Personal Returns due – Nonresident, US income, etc.
04/15/2010 Personal Returns due – Easy Form Return
04/15/2010 Personal Returns due – Not Itemizing Return Form
04/15/2010 Personal Return – Extensions due
04/15/2010 US Gift and Generation-Skipping Transfer Tax Return
04/15/2010 US Gift and Generation-Skipping Transfer Tax Return Extension Due
04/15/2010 Partnership Returns due
04/15/2010 Issue K-1’s with Partnership Returns
04/15/2010 Electing Large Partnership Returns due
04/15/2010 Estate & Trusts Returns are due; Bankruptcy fillings use the same form
04/15/2010 Partnership, Estate & Trusts Returns – Extensions due
04/15/2010 Individuals, Farmers & Fishermen Pay 1st Quarter Estimated Tax Payment
04/15/2010 Corporations – 1st Quarter Estimate Tax payment Due
04/15/2010 Estates & Trusts 1st Estimated Tax Payment
04/15/2010 Employers Make Monthly Payroll tax deposit on the 15th of each month
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