What you need to know for 2010

Good morning!
We are going to start a four-part series of Tax and Money Tips to take a look at the Patient Protection and Affordable Care Act and the Health Care & Education Affordability Act.  These acts represent over 2400 pages of new laws and are collectively called the Healthcare Bill.

Despite widespread belief that health coverage is mandatory now, the mandate for health insurance coverage does not actually take effect until 2014.  In fact, some provisions of the Healthcare Bill do not take effect until 2018.

This week we will highlight the changes that take effect in 2010.  Subsequent Tax Tips will look at future changes.

Here is what you need to know for 2010:

• Health care coverage availability for children up to age 26 (by 9/23/2010)
• Ban on lifetime benefit limits of health care plans
• Ban on exclusion of coverage for pre-existing conditions for those under age 19, (2014 for all)
• Policies must cover preventive checkups without employee co-pays
• Tax credits available to small business owners to offer health care coverage
• 10% sales tax on tanning salon services
• Businesses must provide the same coverage for all employees
• 20% – 40% penalties associated with transactions that do not meet the “Economic Substance” test
• Medicare Part D “donut hole” will be narrowed by providing a $250 rebate to senior citizens
• A new $13,170 refundable Adoption Credit

There are many unknown and unanswered questions about this mammoth and far reaching bill.  As Speaker of the House, Nancy Pelosi said, “Let’s pass this bill and see what is in it.”

We’ll find out together.

Questions or Comments?
You can add comments here, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.