Yesterday I posted for you the changes in our taxes that we face next year. Today is the second wave of taxes that we are to face.
Second Wave:OBAMACAREThere are over twenty new or higher taxes in Obamacare. Several will first go into effect on January 1, 2011. They include:
The "Medicine Cabinet Tax":
Thanks to Obamacare, Americans will no longer be able to use health savings account (HSA), flexible spending account (FSA), or health reimbursement (HRA) pre-tax dollars to purchase non-prescription, over-the-counter medicines (except insulin).
The "Special Needs Kids Tax":
This provision of Obamacare imposes a cap on flexible spending accounts (FSAs) of $2500 (Currently, there is no federal government limit). There is one group of FSA owners for whom this new cap will be particularly cruel and onerous: parents of special needs children.
There are thousands of families with special needs children in the United States , and many of them use FSAs to pay for special needs education.
Tuition rates at one leading school that teaches special needs children in Washington, D.C. National Child Research Center ) can easily exceed $14,000 per year. Under tax rules, FSA dollars cannot be used to pay for this type of special needs education.
The HSA (Health Savings Account) Withdrawal Tax Hike:
This provision of Obamacare increases the additional tax on non-medical early withdrawals from an HSA from 10 to 20 percent, disadvantaging them relative to IRAs and other tax-advantaged accounts, which remain at 10 percent.
*Stay tuned tomorrow for the Second wave of tax hikes expected next year!*
The "Medicine Cabinet Tax":
Thanks to Obamacare, Americans will no longer be able to use health savings account (HSA), flexible spending account (FSA), or health reimbursement (HRA) pre-tax dollars to purchase non-prescription, over-the-counter medicines (except insulin).
The "Special Needs Kids Tax":
This provision of Obamacare imposes a cap on flexible spending accounts (FSAs) of $2500 (Currently, there is no federal government limit). There is one group of FSA owners for whom this new cap will be particularly cruel and onerous: parents of special needs children.
There are thousands of families with special needs children in the United States , and many of them use FSAs to pay for special needs education.
Tuition rates at one leading school that teaches special needs children in Washington, D.C. National Child Research Center ) can easily exceed $14,000 per year. Under tax rules, FSA dollars cannot be used to pay for this type of special needs education.
The HSA (Health Savings Account) Withdrawal Tax Hike:
This provision of Obamacare increases the additional tax on non-medical early withdrawals from an HSA from 10 to 20 percent, disadvantaging them relative to IRAs and other tax-advantaged accounts, which remain at 10 percent.
*Stay tuned tomorrow for the Second wave of tax hikes expected next year!*
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