You’ve heard about it and we all knew it was coming, but now the Obamacare taxes are in full swing. Are you ready for what is to come?
Well, you probably realized the Obamacare taxes have actually been creeping into your life last year as the “Net Investment Income” tax hit folks with a 3.8% federal tax if you had over $250,000 Adjusted Gross Income as joint spouse filers. Or maybe you saw the 0.9% additional Medicare tax coming out of your paycheck. But you might have also seen additional tax on your rental income! Wow, with all these new taxes, how can you follow the rules and minimize taxes?
First, you need to make sure you comply with the tax law. The IRS requires us to report our health insurance information on your tax return now. So, you will get a new form called a “1095-A” or a “1095-B” that has to be reported by your employer or insurance carrier. Be sure to have this when you start your tax return for the 2014 tax year or you’ll be fined (it is called the “shared responsibility penalty”)!
Call us to determine if you qualify for the “special exemptions” from the new fine.
To minimize tax, you need to reduce your Adjusted Gross Income. Deductions allowed include retirement contributions, deferred compensation, health savings accounts, business losses, and self-employed health insurance, just to name a few. If you own a business and also the property it resides in, there are even more options!
Some good news is that retirement distributions from alimony, Social Security, pensions, annuities, IRA’s, and certain deferred compensation plans are not subject to the Net Investment Income tax.
This tax year will have lots of new issues to address. Be prepared and get ready soon!
Need to schedule a consult with a CPA to answer all your questions? Stan Moore CPA brings over two decades of combined business experience as a Certified Public Accountant (N.C. Certificate #32076), Chief Financial Officer, and Commercial Banker to you. Understanding finance, accounting, and taxes is key to serving small businesses and individuals. Call, email or contact me HERE today, I would love to help you.