Important Deductions Vanishing in 2013

Recently many of the conversations between entrepreneurs and their advisors have addressed the positive and negative impacts of The Affordable Healthcare Act as it affects healthcare plans for business. However as we approach the end of 2013, it’s important for business owners to understand the 2014 federal tax changes as well as the various tax consequences of The Affordable Healthcare Act as they begin to unfold. One of the tax changes involves the reduction or outright elimination of tax […]

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Recently many of the conversations between entrepreneurs and their advisors have addressed the positive and negative impacts of The Affordable Healthcare Act as it affects healthcare plans for business. However as we approach the end of 2013, it is important for business owners to understand the 2014 federal tax changes as well as the various tax consequences of The Affordable Healthcare Act as they begin to unfold.

One of the tax changes involves the reduction or outright elimination of tax deductions and/or tax credits effective on January 1st, 2014. In the past, many such expiring tax deductions and tax credits were extended by Congress. Most advisors do not expect this to happen again so it is wise to pay close attention to the reductions and expirations in the tax code.

 

 

One of the federal tax consequences related to Obamacare, also known as the Affordable Care Act, is the introduction of a new tax known as the Obamacare Medicare Tax which applies to various forms of passive income and earned income for taxpayers who have high income. This new tax applies to 2013 federal tax returns.

If you are a successful entrepreneur, it behooves you to take note of the expiring tax credits and tax deductions before the 2013 calendar year comes to an end. It may not be too late to take advantage of these tax deductions and tax credits. In part two of this two-part Infographic series, I summarize an overview of the new Obamacare Medicare Tax, as it may apply to your 2013 federal tax return.