Q. I’ve heard about a new tax on medical devices. Will this affect me in 2014? J.M.G., San Bernardino, Calif.
A. Not directly. Under the Patient Protection and Affordable Care Act of 2010, a 2.3% excise tax applies to most medical devices, but the tax is imposed on manufacturers, not purchasers of health care services. However, some commentators believe the tax will be reflected in higher costs to consumers. The new 2.3% tax actually went into effect on Jan. 1, 2013.
Tip: Proposed legislation introduced earlier this year would eliminate the excise tax on medical devices. We’ll keep you posted on important developments.
- Small Business Tax Deduction Strategies No matches