Here are all the articles I've written about Tax credit. Enjoy!

April 18th, 2010

Small Business Health Care Tax Credit

If you own a small business, this is for you.    Did you know that, as a result of the recent health care reform legislation, starting in 2010 you may be eligible for a 35% tax credit?

Eligibility Rules

  • Providing health care coverage. A qualifying employer must cover at least 50 percent of the cost of health care coverage for some of its workers based on the single rate.
  • Firm size. A qualifying employer must have less than the equivalent of 25 full-time workers (for example, an employer with fewer than 50 half-time workers may be eligible).
  • Average annual wage. A qualifying employer must pay average annual wages below $50,000.
  • Both taxable (for profit) and tax-exempt firms qualify.

Amount of Credit

  • Maximum Amount. The credit is worth up to 35 percent of a small business’ premium costs in 2010. On Jan. 1, 2014, this rate increases to 50 percent (35 percent for tax-exempt employers).
  • Phase-out. The credit phases out gradually for firms with average wages between $25,000 and $50,000 and for firms with the equivalent of between 10 and 25 full-time workers.
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March 26th, 2010

How Health Care Reform Affects You

If you didn’t read the entire 12-page synopsis of the new Health Care Reform legislation which I posted a couple of days ago (because you found it just too exciting!), here is a year-by-year breakdown of what you can expect (the big stuff doesn’t happen until 2014).   Can you spot the fatal flaws?

2010

  • Subsidies begin for small businesses to provide coverage to employees
  • Insurance companies barred from denying coverage to children with pre-existing conditions
  • Children permitted to stay on their parents’ insurance policies until their 26th birthday

2011

  • Set up long term care program under which people pay premiums into system for at least 5 years and become eligible for support payments if they need assistance in daily living
  • Drug makers face annual fees of $2.5 billion

2013

  • New Medicare tax on individuals earning more than $200,000 a year and couples filing jointly earning more than $250,000 a year
  • Tax on wages rises to 2.35% up from 1.45%
  • New 3.8% tax on unearned income such as dividends and interest
  • Excise tax of 2.9% imposed on sale of medical devices
  • Medicare pilot program begins to test bundled payments for care, in a bid to pay for quality rather than quantity of services

2014

  • Create exchanges where people without employer coverage, as well as small businesses, can shop for health coverage.  Insurance companies barred from denying coverage to anyone with pre-existing illness.
  • Requirement begins for most people to have health insurance.  Subsidies begin for lower- and middle-income people.  People at 133% of the federal poverty level pay maximum of 3% of income for coverage.  People at 400% of the poverty level pay up to 9.5% of income.  (Poverty level currently is about $22,000 for a family of four.)
  • Medicaid (in CA, Medi-Cal), expands to all Americans with income up to 133%
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