Whitney & Associates | The Affordable Care Act Taxes
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15 Jan The Affordable Care Act Taxes

In January 2013, The American Taxpayer Relief Act was passed within hours after the New Year, which provided relief in many areas – some temporary and some permanent. There are several differences to note, along with extensions of existing credits, rules, and guidelines. Various changes include new taxes and surtaxes, along with rules and guidelines from previous tax years re-implemented. The following are highlights:

The Affordable Care Act
The Net Investment Income Tax of 3.8% on certain net income investments is now effective for those with a modified adjusted gross income over $200,000 single and $250,000 married, beginning January 1, 2013. This includes common types of investment income such as interest, capital gains, dividends, and rental income.

See additional facts here.

The Additional Medicare Tax of 0.9% is in place for wages and compensation above $200,000 for single earners and $250,000 for married. Wage earners will see the 0.9% Medicare surtax withheld by employers once the income thresholds have been crossed, and collect based on a single income source.

Details and additional facts here.


***All income limits listed are MAGI (modified adjusted gross income)