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Affordable Care Act Tax Provisions

The Affordable Care Act contains some tax provisions that take effect this year and more that will be implemented during the next several years. This new credit helps small businesses and a small tax-exempt organization afford the cost of covering their employees and is specifically targeted for those with low- and moderate-income workers. The credit is designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage they already have. In general, the credit is available to small employers that pay at least half the cost of single coverage for their employees.

Health coverage for an employee’s children under 27 years of age is now generally tax-free to the employee. This expanded health care tax benefit applies to various work place and retiree health plans. These changes immediately allow employers with cafeteria plans — plans that allow employees to choose from a menu of tax-free benefit options and cash or taxable benefits — to permit employees to begin making pre-tax contributions to pay for this expanded benefit. This also applies to self-employed individuals who qualify for the self-employed health insurance deduction on their federal income tax return. There are policies that do not cost much but are offering very reliable and comprehensive coverage.

This entry was posted on Wednesday, July 27th, 2011 at 7:57 am and is filed under Florida Health Insurance, georgia health insurance, Health Insurance, Health Insurance Blog, Life Insurance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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