Navigating Health Care Taxes
Chances are you have heard about the 3.8% surtax that went into effect in 2013 under the Affordable Care Act—but do you know if and when you might need to pay it?
While there have been significant changes to the tax code over the past year, the Medicare tax and net investment income tax remain in effect. This surtax requires that an additional tax be paid by those with investment income, whether from interest, dividends, capital gains or rental properties when they are above the annual income threshold.
Trusts and estates are hit especially hard; they reach the income threshold at only $12,750 in 2019. For those still earning wages or self-employment income, there might be an additional 0.9% Medicare tax to consider as well.
Are you interested in learning strategies to reduce or potentially eliminate these health care taxes? We are here to help! Give us a call at 516-294-5287 to schedule a time to further discuss your needs.
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Disclaimer:
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