How the Affordable Care Act Affects Taxpayers

Barack Obama signing the Patient Protection and Affordable Care Act at the White House (Photo credit: Wikipedia)

Many view the recently passed Affordable Care Act as a blessing while others view it as a curse. Regardless of how you feel about the tax, you do need to understand if it will affect your paycheck and/or investments, and, if so, how. While all kinds of people could potentially be affected by the Act, it will mainly impact those who fall within the top two tax brackets.

Individuals who earn above the current threshold amount will be subject to a 0.9% increase in funds taken from their paychecks as a result of the new tax. Likewise, those earning above the threshold amount will lose 3.8% to Net Investment Income taxes. And, even if you aren’t currently subject to an increase in taxes, you could be if your earnings increase; there is no evidence that threshold amounts will increase due to inflation.

If you are going to be affected by this new tax, a Naperville accountant can explain to you how you will be affected and what you can do to minimize your tax losses. You can find a helpful, knowledgeable Naperville accountant at Susan S. Lewis, Ltd.

Monday, March 10, 2014