Tax Timeline in the Health Care Reform Act

Tax Timeline in the Health Care Reform Act

IRC Section   

Provisions   

Effective Date   

2010

23

Adoption credit increased (to $13,170 from $12,170 in 2010), extended through 2011 and made refundable.

after 12/31/09 and before 1/1/12

38(b)(36)

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).

after 12/31/09

48D

50% credit provided to small business for investments in certain qualifying therapeutic discovery projects for 2009 and 2010.

amounts paid or incurred for tax years after 12/31/08

105(b)

Income exclusion for employer-provided health insurance extended to children under age 27.

after 3/30/10

137(a)(2)

Exclusion for employer-provided adoption assistance increased by $1,000.

after 12/31/09

162(I)(1)

Self-employed health insurance premium includes premiums paid by taxpayer for child under age 27.

after 3/30/09

220(f)(4)(A)

Penalty increased to 20% for nonqualified HSA and FSA distributions after 2010.

after 12/31/09

5000B

10% excise tax on indoor tanning services.

performed after 7/1/10

2011

106(f)

FSA, HSA, HRA, and MSA qualified distributions include withdrawals for prescription drugs and insulin only, no over-the-counter drugs.

after 12/31/10

125(j)

Establish simple cafeteria plans for small employers.

after 12/31/10

6051(a)(14)

Cost of employer-sponsored health coverage must be shown on W-2.

after 12/31/10

2012

6041(a)

Information reporting is required for payments of $600 or more for property or services to a non-tax-exempt corporation.

after 12/31/11

2013

56(b)(1)(B)

Medical expense deduction increases to 10% after 2012, after 2017 for people 65 or older.

tax years after 12/31/12

125(i)(1)

FSA contributions limited to $2,500.

after 12/31/12

164(f)   

Medicare premium increases by 0.9% for taxpayers whose AGI exceeds $200,000 single and $250,000 MFJ.

after 12/31/12

213   

Medical expense deduction increases to 10% after 2012, after 2017 for people 65 or older.

after 12/31/12

1401(b)

.09% employee Medicare tax increase on wages over $200,000 ($250,000 combined wages MFJ).

after 12/31/12

1411

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.

after 12/31/12

2014

36B

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.

after 12/31/13

139D

Exclusion from income of free choice vouchers.

after 12/31/13

162(a)

Deduction allowed to employer for free choice vouchers.

after 12/31/13

4980H

Employers with at least 50 full-time employees may be subject to penalty if not providing health insurance coverage to employees.

after 12/31/13

5000(A)(a)

"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).

after 12/31/13

6056

Reporting of employer health insurance coverage.

after 12/31/13

2018

4908I(b)(3)(C)

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.

after 12/31/17