With a new year comes new tax rules. I’ve touched on some of these changes in previous posts, such as the new home office deduction and the effect of DOMA for same sex couples. Some of the more talked about changes have come from the Affordable Care Act (Obamacare or the ACA). While the ACA isn’t new for 2014, there are changes starting January 1st that will affect both individuals and businesses.
For businesses, one of the biggest talking points has been the small business health care tax credit, which applies to employers with fewer than 25 employees. The credit can yield significant savings, potentially being worth as much as 35% of premiums paid.
For individuals, those who are not carrying health insurance run the risk of being penalized. Additionally, there is also an increase in Social Security and Medicare taxes for higher income taxpayers.
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