New Health Care bill

[JRS]

A quote from another tax forum:

In the new health care bill making its way through Congress:

Quote:

SEC. 59B. TAX ON INDIVIDUALS WITHOUT ACCEPTABLE HEALTH CARE COVERAGE.

`(a) Tax Imposed- In the case of any individual who does not meet the requirements of subsection (d) at any time during the taxable year, there is hereby imposed a tax equal to 2.5 percent of the excess of--

`(1) the taxpayer's modified adjusted gross income for the taxable year, over

`(2) the amount of gross income specified in section 6012(a)(1) with respect to the taxpayer.

If passed, that means if you don’t have acceptable health care coverage, you will be assessed a tax equal to 2.5% of your AGI that exceeds the filing requirement exemption amount for the year.

Example: You are self-employed and make $60,000 over the minimum filing requirement. You do not have acceptable health care coverage. You must pay a tax = $1,500 on your 1040 return.

Implications: We tax preparer’s will now be required to ask all of our clients whether or not they have acceptable health care coverage. If they do not, we have to enter a 2.5% penalty tax on their return. Imagine the preparer due diligence standards that we will be required to follow to make sure every client has acceptable health care coverage, or pays the penalty for not.

[bstaxes]

In NJ the tax returns asks if the dependents have health insurance check yes or no. I most certainly do not ask for their insurance card. I feel that is not my business which company or how much insurance the client has for their dependents. I am not BIG BROTHER and I wont be. On this due dilgence I am drawing the line to ask only and accept their response. Today you can have coverage and tomorrow be unemployed and no coverage, will we have to amend the return???? Crazy. Sorry this just gets my dander up. Thanks for letting me rant.

[kcjenkins]

A quote from another tax forum:

In the new health care bill making its way through Congress:

Quote:

SEC. 59B. TAX ON INDIVIDUALS WITHOUT ACCEPTABLE HEALTH CARE COVERAGE.

`(a) Tax Imposed- In the case of any individual who does not meet the requirements of subsection (d) at any time during the taxable year, there is hereby imposed a tax equal to 2.5 percent of the excess of--

`(1) the taxpayer's modified adjusted gross income for the taxable year, over

`(2) the amount of gross income specified in section 6012(a)(1) with respect to the taxpayer.

If passed, that means if you don’t have acceptable health care coverage, you will be assessed a tax equal to 2.5% of your AGI that exceeds the filing requirement exemption amount for the year.

Example: You are self-employed and make $60,000 over the minimum filing requirement. You do not have acceptable health care coverage. You must pay a tax = $1,500 on your 1040 return.

Implications: We tax preparer’s will now be required to ask all of our clients whether or not they have acceptable health care coverage. If they do not, we have to enter a 2.5% penalty tax on their return. Imagine the preparer due diligence standards that we will be required to follow to make sure every client has acceptable health care coverage, or pays the penalty for not.

That bolded phrase is really scary to me. AT ANY TIME DURING THE TAXABLE YEAR?

As that is written, it could apply if you worked for ABC inc, and were covered, then laid off in July, and could not afford COBRA payments, then went to work for ZXY in Aug and were covered again. You'd still be subject to the tax penalty, because you were not covered during July.

[taxtrio]

And How exactly does taxing a person 2.5 percent of his AGI get him Health Insurance Coverage???

Would the tax paid go toward a goverment offered health insurance?

There are a lot of people here in Michigan that are about to run out of their unemployment and can't even pay the bills

they have now; how are they expected to buy insurance?