Tag Archives: deductions

Obamacare is coming with some tax-filing surprises

Some great things about the Affordable Care Act (aka Obamacare): people can still get insurance when they leave a job or are laid off; children up to age 26 can get coverage under a parent’s plan; and pre-existing conditions can no longer be used to deny coverage to Americans.

Good changes all. But lots of components of the ACA are being run through the income tax code, and that is going to make some filers nuts this year.

As The New York Times reports, many people are going to find out when they do their tax returns that they owe a penalty for failing to get health insurance.

I can summarize how the ACA will affect taxpayers in five easy sentences:

  • Some taxpayers who received subsidies for health insurance are going to owe money because they have to repay part of a subsidy
  • Some taxpayers who received subsidies are going to get more money back, because they were entitled to a larger subsidy.
  • Some taxpayers who received no subsidy will now get one, but they’ll have to file a tax return for that to happen.
  • Some taxpayers who did not have health insurance will not have to pay a penalty because they’ll qualify for one of the more than 30 exemptions from penalty.
  • Some taxpayers will notice virtually no change in how their taxes are prepared.

Hold on to your hats; it’s going to be a bumpy ride this tax season.

“The Situation” is in a not-so-good tax situation

Did you know that “Jersey Shore” reality show personality Michael Sorrentino, aka “The Situation”, and his brother Marc, grossed almost $9 million in a variety of ventures over four years? Me neither, until I read the U.S. District Court indictment, reported inThe New York Times,charging the brothers with conspiracy and filing false tax returns. Michael…Continue Reading

Delta Airlines pays zero tax on $2.7 billion in earnings in 2013

When people have a bad financial year, they generally don’t get any tax benefit. But when corporations lose money, the losses don’t disappear. For tax purposes, they are carried forward to future years, and can result in companies making billions but still owing nothing. Case in point: Delta Airlines, which, as Bloomberg Business Week explains,…Continue Reading

Arranging a tax-deductible fire

Ever want to help support your local fire department? Several taxpayers over the years have done just that, by allowing the fire department to use their house for training purposes, including–yes–burning down the house. Why would someone do that? Well, for the tax benefit! No kidding. The idea is that you get to deduct the…Continue Reading

Is a zygote a person? Ask your tax guy.

More than a half-dozen states are considering constitutional amendments, ballot measures or legislation that would declare a fertilized human egg (think back to your high school science classes and the word, “zygote”) to have the legal rights of a person. I’m not going to get into the logic of this. Oh, heck, sure I will—it’s…Continue Reading