The U.S. Supreme Court has spoken: It has generally upheld the constitutionality of the Patient Protection and Affordable Care Act of 2010 (PPACA), the controversial health care law that is often called Obamacare.
Alert: This means that the tax-related provisions in the PPACA will stand. Therefore, the tax bill for some taxpayers, especially those with higher incomes, will increase, starting next year.
Here are several key tax law changes that you will have to contend with unless something changes.
1. Medicare surtaxes: Beginning in 2013, high-income taxpayers will face two new Medicare tax burdens:
- A 0.9% Medicare tax is imposed on wages of single filers with earned income above $200,000 and $250,000 for joint filers.
- A 3.8% Medicare tax applies to all or part of the “net investment income” received by single filers with a modified adjusted gross income (MAGI) above $200,000 and $250,000 for joint filers....(register to read more)