I got this e-mail today. Anyone know if it is true?
2011 W-2 Tax Forms and Obamacare
If this doesn’t get to you, then check your pulse. You may be a flat line...
Should you want to verify this, go to http://www.thomas.gov/, enter “HR 3590”
in the search box and look for “CRS Summaries.” This is what you’ll find.
Title IX Revenue Provisions—Subtitle A: Revenue Offset
“(Sec. 9002) Requires employers to include in the W-2 form of each employee
the aggregate cost of applicable employer-sponsored group health coverage
that is excludable from the employee’s gross income (excluding the value of
contributions to flexible spending arrangements).”
Starting in 2011—next year—the W-2 tax form sent by your employer will be
increased to show the value of whatever health insurance you are provided.
It doesn’t matter if you’re retired. Your gross income WILL go up by the amount
of insurance your employer paid for. So you’ll be required to pay taxes on a larger
sum of money that you actually received. Take the tax form you just finished for
2009 and see what $15,000.00 or $20,000.00 additional gross income does to
your tax debt.
That’s what you’ll pay next year. For many it puts you into a
much higher bracket. This is how the government is going to buy insurance for
fifteen (15) percent that don’t have insurance and it’s only part of the tax increases,
but it’s not really a “tax increase” as such, it a redefinition of your taxable income.
Also, go to Kiplinger’s and read about the thirteen (13) tax changes for 2010 that
could affect you.
Why am I sending you this? The same reason I hope you forward this to every
single person in your address book. People have the right to know the truth because
an election is coming in November. So vote intelligently, based on your values.
But also adjust your tax withholding, or increase your savings, so that you aren’t
surprised and put in a jam when your federal income taxes are due on April 15, 2012.
Fight organized crime!
==========================================the provisions I found are listed below
that I found relative to the above email. Diana K.
Title IX: Revenue Provisions - Subtitle A: Revenue Offset Provisions - (Sec. 9001, as modified by section 10901) Amends the Internal Revenue Code to impose an excise tax of 40% of the excess benefit from certain high cost employer-sponsored health coverage. Deems any amount which exceeds payment of $8,500 for an employee self-only coverage plan and $23,000 for employees with other than self-only coverage (family plans) as an excess benefit. Increases such amounts for certain retirees and employees who are engaged in high-risk professions (e.g., law enforcement officers, emergency medical first responders, or longshore workers). Imposes a penalty on employers and coverage providers for failure to calculate the proper amount of an excess benefit.
(Sec. 9002) Requires employers to include in the W-2 form of each employee the aggregate cost of applicable employer-sponsored group health coverage that is excludable from the employee’s gross income (excluding the value of contributions to flexible spending arrangements).
(Sec. 9003) Restricts payments from health savings accounts, medical savings accounts, and health flexible spending arrangements for medications to prescription drugs or insulin.
(Sec. 9004) Increases to 20% the penalty for distributions from a health savings account or Archer medical savings account not used for qualified medical expenses.
(Sec. 9005, as modified by section 10902) Limits annual salary reduction contributions by an employee to a health flexible spending arrangement under a cafeteria plan to $2,500. Allows an annual inflation adjustment to such amount after 2011.
(Sec. 9006) Applies to corporations reporting requirements for payments of $600 or more to persons engaged in a trade or business.
(Sec. 9007, as modified by section 10903) Requires tax-exempt charitable hospitals to: (1) conduct a community health needs assessment every two years; (2) adopt a written financial assistance policy for patients who require financial assistance for hospital care; and (3) refrain from taking extraordinary collection actions against a patient until the hospital has made reasonable efforts to determine whether the patient is eligible for financial assistance. Imposes a penalty tax on hospitals who fail to comply with the requirements of this Act.
Requires the Secretary of the Treasury to report to Congress on information with respect to private tax-exempt, taxable, and government-owned hospitals regarding levels of charity care provided, bad debt expenses, unreimbursed costs, and costs for community benefit activities.
(Sec. 9008) Imposes an annual fee on the branded prescription drug sales exceeding $5 million of manufacturers and importers of such drugs beginning in 2010. Requires the HHS, VA, and DOD Secretaries to report to the Secretary of the Treasury on the total branded prescription drug sales within government programs within their departments.
(Sec. 9009, as modified by section 10904) Imposes an annual fee on the gross sales receipts exceeding $5 million of manufacturers and importers of certain medical devices beginning in 2011.
(Sec. 9010, as modified by section 10905) Imposes on any entity that provides health insurance for any United States health risk an annual fee beginning in 2011. Defines “United States health risk” as the health risk of an individual who is a U.S. citizen or resident or is located in the United States with respect to the period the individual is so located. Exempts entities whose net premiums written are not more than $25 million. Requires all entities subject to such fee to report to the Secretary of the Treasury on their net written premiums and imposes a penalty for failure to report.
(Sec. 9011) Requires the VA Secretary to study and report to Congress by December 31, 2012, on the effect of fees assessed by this Act on the cost of medical care provided to veterans and on veterans’ access to medical devices and branded prescription drugs.
(Sec. 9012) Eliminates the tax deduction for expenses for determining the subsidy for employers who maintain prescription drug plans for Medicare Part D eligible retirees.
(Sec. 9013) Increases the adjusted gross income threshold for claiming the itemized deduction for medical expenses from 7.5% to 10% beginning after 2012. Retains the 7.5% threshold through 2016 for individual taxpayers who have attained age 65 before the close of an applicable taxable year.
(Sec. 9014) Imposes a limitation after December 31, 2012, of $500,000 on the deductibility of remuneration paid to officers, directors, employees, and service providers of health insurance issuers who derive at least 25% of their gross premiums from providing health insurance coverage that meets the minimum essential coverage requirements established by this Act.
(Sec. 9015, as modified by section 10906) Increases after December 31, 2012, the hospital insurance tax rate by .9% for individual taxpayers earning over $200,000 ($250,000 for married couples filing joint tax returns).
(Sec. 9016) Requires Blue Cross or Blue Shield organizations or other nonprofit organizations that provide health insurance to reimburse at least 85% of the cost of clinical services provided to their enrollees to be eligible for special tax benefits currently provided to such organizations.
Subtitle B: Other Provisions - (Sec. 9021) Excludes from gross income the value of certain health benefits provided to members of Indian tribes, including: (1) health services or benefits provided or purchased by IHS; (2) medical care provided by an Indian tribe or tribal organization to a member of an Indian tribe; (3) accident or health plan coverage provided by an Indian tribe or tribal organization for medical care to a member of an Indian tribe and dependents; and (4) any other medical care provided by an Indian tribe that supplements, replaces, or substitutes for federal programs.
(Sec. 9022) Establishes a new employee benefit cafeteria plan to be known as a Simple Cafeteria Plan, defined as a plan that: (1) is established and maintained by an employer with an average of 100 or fewer employees during a two-year period; (2) requires employers to make contributions or match employee contributions to the plan; and (3) requires participating employees to have at least 1,000 hours of service for the preceding plan year; and (4) allows such employees to elect any benefit available under the plan.
(Sec. 9023) Allows a 50% tax credit for investment in any qualifying therapeutic discovery project, defined as a project that is designed to: (1) treat or prevent diseases by conducting pre-clinical activities, clinical trials, and clinical studies, or carrying out research projects to approve new drugs or other biologic products; (2) diagnose diseases or conditions to determine molecular factors related to diseases or conditions; or (3) develop a product, process, or technology to further the delivery or administration of therapeutics. Directs the Secretary of the Treasury to award grants for 50% of the investment in 2009 or 2010 in such a project, in lieu of the tax credit.
-—— Original Message -——
how’s that hope and change workin for ya/
From my reading of the health care bill, it is at least mostly true. I cannot remember all the details beyond the health care plan payment by the company is now taxable income.
Raising the taxes on the middle class through the back door. So if you make $100K now you can deduct medical expenses above $7K. Thanks to Obama it is now $10K.
I got this e-mail today. Anyone know if it is true?
Only partially true, and not the part that is the most concern. The new rule is that the cost of health insurance is to be reported on the W-2, but not as gross income. Currently, your employer is required to report other items, like 401(k) contributions, on your W-2, but you are not taxed on them. There is a limit to the contributions, so that is why they are reported. So, now the government wants to know how much your health insurance plan is. This is probably either to make sure your coverage meets their minimum or in preparation for taxing you on it, either one not good. But, so far, that amount will not be added to your taxable income.