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Tax Timeline in the Health Care Reform Act
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IRC Section
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Provisions
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Effective Date
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2010
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23
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Adoption credit increased (to $13,170 from $12,170 in 2010), extended through 2011 and made refundable.
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after 12/31/09 and before 1/1/12
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38(b)(36)
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An insurance credit is allowed to small employers paying at least 50% of employess' health insurance costs. The average annual wage of employees must be under $25,000. The credit is as high as 35% (50% after 2013).
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after 12/31/09
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48D
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50% credit provided to small business for investments in certain qualifying therapeutic discovery projects for 2009 and 2010.
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amounts paid or incurred for tax years after 12/31/08
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105(b)
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Income exclusion for employer-provided health insurance extended to children under age 27.
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after 3/30/10
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137(a)(2)
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Exclusion for employer-provided adoption assistance increased by $1,000.
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after 12/31/09
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162(I)(1)
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Self-employed health insurance premium includes premiums paid by taxpayer for child under age 27.
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after 3/30/09
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220(f)(4)(A)
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Penalty increased to 20% for nonqualified HSA and FSA distributions after 2010.
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after 12/31/09
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5000B
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10% excise tax on indoor tanning services.
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performed after 7/1/10
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2011
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106(f)
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FSA, HSA, HRA, and MSA qualified distributions include withdrawals for prescription drugs and insulin only, no over-the-counter drugs.
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after 12/31/10
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125(j)
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Establish simple cafeteria plans for small employers.
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after 12/31/10
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6051(a)(14)
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Cost of employer-sponsored health coverage must be shown on W-2.
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after 12/31/10
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2012
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6041(a)
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Information reporting is required for payments of $600 or more for property or services to a non-tax-exempt corporation.
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after 12/31/11
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2013
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56(b)(1)(B)
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Medical expense deduction increases to 10% after 2012, after 2017 for people 65 or older.
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tax years after 12/31/12
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125(i)(1)
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FSA contributions limited to $2,500.
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after 12/31/12
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164(f)
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Medicare premium increases by 0.9% for taxpayers whose AGI exceeds $200,000 single and $250,000 MFJ.
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after 12/31/12
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213
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Medical expense deduction increases to 10% after 2012, after 2017 for people 65 or older.
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after 12/31/12
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1401(b)
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.09% employee Medicare tax increase on wages over $200,000 ($250,000 combined wages MFJ).
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after 12/31/12
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1411
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New 3.8% Medicare tax assessed on net investment income of individuals, estates, and trusts with income over $200,000 single and $250,000 MFJ.
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after 12/31/12
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2014
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36B
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Individuals between 100% and 400% of federal poverty level will qualify for refundable tax credit ("premium assistance credit") to offset exchange-purchased health insurance premiums.
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after 12/31/13
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139D
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Exclusion from income of free choice vouchers.
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after 12/31/13
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162(a)
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Deduction allowed to employer for free choice vouchers.
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after 12/31/13
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4980H
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Employers with at least 50 full-time employees may be subject to penalty if not providing health insurance coverage to employees.
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after 12/31/13
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5000(A)(a)
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"Shared responsibility penalty" assessed against taxpayers who do not have health coverage. Penalty is phased in over 3 years starting in 2014 at $95 per individual ($285 per family); in 2015 at $325 per individual ($975 per family); and in 2016 at $695 per individual ($2,085 per family).
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after 12/31/13
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6056
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Reporting of employer health insurance coverage.
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after 12/31/13
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2018
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4908I(b)(3)(C)
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40% excise tax assessed against "Cadillac" employer-sponsored health plans where the premium exceeds $10,200 for individual coverage and $27,500 for family coverage.
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after 12/31/17
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