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TAX TIME LINE IN THE HEALTH CARE REFORM ACT
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IRC Section
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Provisions
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Effective Date
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2010
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23; 137(a)(2)
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Adoption credit and employer-provided adoption assistance increased to $13,170 (from $12,170), extended through 2011 and made refundable.
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after 12-31-09 and before 1-1-2012
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38(b)(36)
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A maximum 35% credit (25% for non-profits) is allowed to small employers paying at least 50% of employees
single-person health insurance costs. Credit phases out when average annual employee wage increases from
$25,000 to $50,000 or average number of employees increases from 10 to 25.
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after 12-31-2009
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48D
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50% credit provided to small business for investments in certain qualifying therapeutic discovery projects (for 2009 and 2010)
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amounts paid or incurred for tax years after 12-31-2008
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105(b);162(l)(1)
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Income exclusion for employer provided health insurance and for self-employed health insurance extended to children under age 27
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after 3-30-10
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5000B
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10% excise tax on indoor tanning services.
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after 7-01-10
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7701
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Economic substance doctrine with substantial penalties.
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after 3-30-2010
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2011
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106(f)
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FSA, HSA, HRA and MSA qualified distributions include withdrawals for prescription drugs and insulin only, no over-the-counter drugs.
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after 12-31-10
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125(j)
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Establish simple cafeteria plans for small employers.
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after 12-31-10
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220(f)(4)(A)
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Penalty increased to 20% for non qualified HSA and FSA distributions after 2010.
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after 12-31-10
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2012
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6041(a)
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Information reporting required for payments of $600 or more for property or services to all corporations except the tax exempt.
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repealed
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6051(a)(14)
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Cost of employer sponsored health coverage to be shown on W-2.
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after 12-31-11
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2013
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56(b)(1)(B) (tax year); 213
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Medical expense deduction increases to 10% after 2012, after 2017 for people 65 or older.
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after 12-31-12
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125(i)(1)
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FSA contributions limited to $2,500.
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after 12-31-12
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6041(a)
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0.9% Medicare tax increase on SE income and employee wages when AGI exceeds $200,000 ($250,000 combined wages MFJ).
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after 12-31-12
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6051(a)(14)
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New 3.8% Medicare tax assessed on net investment income of individuals, estate and trusts with AGI over $200,000 single and $250,000 MFJ.
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after 12-31-12
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2014
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36B
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Individuals between 100% and 400% of federal poverty level will qualify for refundable tax credit ("premium
assistance credit") to offset exchange-purchased health insurance premiums.
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after 12-31-13
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4980H
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Employers with at least 50 full time employees may be subject to penalty if not providing health insurance coverage to employees.
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after 12-31-13
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6056
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Reporting of large employer health insurance coverage.
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after 12-31-13
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5000A(a)
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"Shared responsibility penalty" assessed against taxpayers who do not have health coverage. Penalty is phased in over
three years starting in 2014 at $95 per individual ($285 per family), in 2015 at $325 per individual ($975 per family)
and in 2115 $695 per individual ($2,085 per family).
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after 12-31-13
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2018
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4908I(b)(3)(C)
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40% excise tax assessed against "Cadillac" employer sponsored health plans where the premium exceeds
$10,200 for individual coverage and $27,500 for family coverage.
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after 12-31-17
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