With tax season starting let’s look at important tax changes in 3 major areas.
1. Affordable Care Act for both individuals and businesses.
- Increased penalties for those who have not gotten the required health coverage.
- The so-called “Cadillac tax” on high-cost health insurance plans was delayed from 2018 to 2020 (and it suspends the medical device tax for two years).
2. Same-sex marriage tax filing
- Simplifying same-sex couples’ tax filing (The Supreme Court’s landmark ruling last year in the Obergefell v. Hodges case should simplify this process, in the upcoming months)
3. Traditional tax breaks
- Tax extenders legislation made some these tax breaks permanent: the enhanced Child Tax Credit, the enhanced American Opportunity Tax Credit, the enhanced Earned Income Tax Credit, the above-the-line deduction for teachers who buy school supplies, the charitable deduction of contributions of real property for conservation purposes, along with the Research & Development Tax Credit and Section 179 expensing.