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Guest Blog: How Will Affordable Care Act Affect Your Tax Bill?

Posted by Louis Balbirer on Wed, Jan 29, 2014

David Merzel of Kaufman Rossin CPAs

Louis Balbirer of Kaufman Rossin writes a guest blog for NetMinder about tax changes related to healthcare reform.

Several tax changes are being rolled out as a result of the Patient Protection and Affordable Care Act (ACA). Here are a few that may affect you or your business this tax season.

Refundable Tax Credits

  • Health Care Tax Credit (aka Premium Assistance Credit)
    – Individuals or families with less than 400% of the Federal Poverty Level can qualify for the health care tax credit for the 2014 tax year, which can be applied in advance toward health insurance premium payments to the exchange. 
  • Small Business Health Care Tax Credit – Small businesses that offer health insurance to employees and cover 50 percent or more of the insurance premiums might qualify for a tax credit. Employers can complete Form 8941 to find out if they are eligible.

Additional Taxes Under ACA for 2013 Tax Year

  • Net Investment Income Tax – A new 3.8% tax will be assessed on net investment income for individuals with modified adjusted gross income above $200,000 (above $250,000 for married filing jointly and above $125,000 for married filing separately). Net investment income includes interest, dividends, rents, royalties, capital gains and other passive income.
  • Additional Medicare Tax – Individuals with wages or self-employed earnings that exceed $200,000 will be subject to an additional 0.9 % Medicare tax. For those who are married filing jointly, the threshold is $250,000 and it is $125,000 for those who are married filing separately.

Contact your accounting professional to learn how these ACA-related tax changes will affect your tax bill.

Louis Balbirer, CPA, is a director of tax services with Kaufman Rossin, one of the top CPA firms in the U.S. He has 20 years of experience providing tax and accounting services to clients and can be reached at

Tags: Affordable Care Act, healthcare reform, ACA, employee benefits, medicare, health care tax credit, premium assistance credit

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