Although Congress passed health care reform in 2010, many of its most sweeping provisions have delayed effective dates. 2014 is a critical year for individuals and businesses. The enclosed timeline highlights the key tax provisions that take effect from 2013-18. For example, we address:
- The higher deductibility threshold for medical expenses, which will need to be reflected on individual tax returns for 2013.
- The individual responsibility penalty, which applies beginning in January 2014 to most individuals who do not maintain health insurance coverage for themselves and their tax dependents.
- Premium tax credits becoming available in January 2014 to assist low- and moderate-income families to purchase health insurance coverage on Exchanges established by the law.
- New restrictions starting in 2014—on allowing employees to pay for individual policies on a pre-tax basis through a cafeteria plan.
- Penalties for larger employers that do not offer health coverage to their employees—or that offer coverage that is considered un-affordable or inadequate. A related provision requires larger employers to report information about their employees and their coverage to the IRS. These provisions will take effect in 2015.