I received this email today. We also know allot of crap flies around the web in emails that simply are not true. But there are plenty of people here that study this type of thing more than I do.
I know that right now, all of my insurance payments are 100% tax deductable, for me, my Wife, and Children that are still in school.

So how about some of you that know more about this, break this down to the truth for the rest of us.

I'll be seeing my account either tommorow or Monday. But if this is true, I'd like for all of you to know

Please read this letter. Your taxes will be greatly impacted. We have to get busy and vote some new people into Congress that don’t continue doing what the current Congress has wrought upon us !
This is supposed to be part of the new Health Care Bill.
I contacted my Congressman about House bill HR3590 the health care bill
Just passed. I asked for a summary of changes.
The aid directed me to go to www: thomas.gov ; enter HR3590 in the search
Box and look for summaries.
Starting in 2011 (next year folks) your W 2 tax form sent by your employer will be increased to show the value of what ever health insurance you are given by the company. It does not matter if that's a private concern or Governmental body of some sort. If you're retired? So what; your gross will go up by the amount of insurance you get.

You will be required to pay taxes on a large sum of money that you have
Never seen.

Take your tax form you just finished and see what $15,000 or $20,000
Additional gross does to your tax debt. That's what you'll pay next year.
For many it also puts you into a new higher bracket so it's even worse.

This is how the government is going to buy insurance for 15% that don't
Have insurance and it's only part of the tax increases.

Not believing this I researched the summaries and here's what I'm reading:

On page 25 of 29 :

TITLE IX REVENUE PROVISIONS- SUBTITLE A: REVENUE OFFSET PROVISIONS-(sec. 9001 , as modified by sec. 10901). 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 employees gross income."

Joan Pryde is the senior tax editor for the Kiplinger letters. Go to Kiplingers and read about 13 tax changes that could affect you. Number 3 is what I just told you about.

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.

 

Got the same email last night. Thank god im not a w2 worker.

 

Yes the e-mail is accurate. So much for no new taxes, not a dime, for anybody making under $250k.
Here is a link to the summary:
http://thomas.loc.gov/cgi-bin/bdquer...ativeData.php|

The part of concern is about 90% of the way to the bottom.

Here is a link to the bill as it was passed:
http://thomas.loc.gov/cgi-bin/query/...4avF:e2349140:

 

I hate to burst your bubble. But all the taxes I pay is technically "Money I'll never see". Not just the new one.

 

OK so let me get this straight-because you already pay taxes then it's alright to have them take more???????
Some how that doesn't work for me.......maybe I'm just weird!

 

It's called socialism. First the socialists require you to have insurance, then they tax you on it, then they tax you again when you need to use it.

Stupid people who voted for Obama and the other democrats (PC term for socialists) should be rounded up and publicly flogged.

 

Quityerbithcen!

It's for the greater good.

If you can afford to pay for your health insurance, you can afford a few more dollars in taxes.

You have more than you need, it's time to spread the wealth.

It's not that we want to penalize your success, it's just that we want to make sure that people behind you can succeede as well.

Why are you so greedy? You republicans have no compassion. Facist corporatists.

Why do you hate the poor!

What are we supposed to do, let all the poor, unfortunate people go with out health care?

From each according to his ability, to each according to his need.



This shouldn't be a surprise to anyone. This is the fundamental transformation of America, in motion. This is what Americans were told they would get, and a majority voted in favor of it. A majority might not be so pleased with this fundamental transformation, but most aren't willing to do more than yell at the television from thier couch.

All these sleeping people are going to usher the dealth of the United States of America. It's time to wake up.

 

I work as hard as I can right now, just to make ends meet. So now I've got to work harder to increase my bottom line. So now I have to increase the bottom line just to pay these new taxes. So now I've done that, so that too will increase my taxes. It's like a snowball. It'll just keep getting bigger the more you roll it, untill it is gets hot, then it melts.

 

That is why my 401k contributions are made as Roth 401k (after tax) contributions. I made that change when the Health Care Bill passed.

 

Can you explain that?

The instructions for the Schedule A, read differently....
"...You can deduct only the part of your mediical and dental expenses that exceeds 7.5% of the amount on Form 1040, line 38...."

If my line 38 = $100,000
and my medical expenses, including premiums, = $10,000
Then the medical portion of my itemized deduction would be $2,500 ($10,000 - $7,500)

If I did not calculate that correctly please explain so that I may file a supplemental return.

 

If you are self employed, you can deduct the cost for health insurance as a business expense.

 

Thank you. I'm good at balancing my books, but I pay an accountant for everything else. I work enough hours everyday, I don't want to add more to it by trying to keep up with a tax code, that lawyers hash out everyday

Raoul, My answer would have been similar to his, but in goat language

 

Mt household medical insurance come to about $1000 a month. So if you do the math on that, and place it in the tax bracket. It adds up to a good dollar amount more in taxes.


Didn't Obama just give us some tax credit to have incentive to have insurance? I thought he did. If so, it is another example of one hand giveth and the other taketh away.

 

I would guess this is the elected pre tax payment for health benefits, similar to the FSA and 401K amounts.

This is what the new tax code will be applied to some ( all ? ) health benefits are no longer pre tax items, this is estimated to be $ 800M of the total costs of the government program.
Not 100% sure on the some / all part, as the "gold plan" parts were one of the items that differ between the House and Senate bills, and I never looked at what the outcome was. They kept pointing at union plans as the gold plans ??

The Schedule A part you are talking about is health costs, so if you are close with out of pocket costs every year, one would elect to have the Health Care premiums to be post tax on your paycheck, so you could add them to the total for schedule A.

This is just what I recall from the last new hire paper work I did. It could be listed in one of the boxes on the plan for an overage amount. Some thing like excess compensation when taking the top earner to the bottom earner ( similar rules for 401K contributions in a company ).

 

Well, I don't have the money to pay for my health insurance; it's part of my retirement package (along with the meager pension I get; the insurance is worth as much, or more, than the pension is to me). That blows the "If you can afford to pay for your health insurance, you can afford a few more dollars in taxes" theory all to heck.

I just love it; first the Feds mandate that everyone have health insurance and that most employers have to provide it, then they (the Feds) turn around and tax it. What a racket!