ECON Obama Care Tax

[20Gauge]

For those who are interested, we just had an update on the new tax laws and though the IRSP, or the Obama individual mandate has been reduced to zero, it is still in effect for the tax year 2018 as it was in 2017. The reduction in the penalty will not take effect until TY 2019.

Also, for those who are picky, the IRSP has not been repealed, but has simply had it's value changed to $ 0.

The same applies to the exemptions. The value has changed to $ 0 and has not been eliminated.

Granted the value being reduced to zero has the same effect as it not being in effect, it is not the same as being repealed. The next Congress that can just as easily change it back any time. Also, many of the changes will be reversed in 2026.

I still look at this as good, but not a perfect solution, but rather a good solution.

 

[Rayku]

It's better than nothing.

 

[20Gauge]

Home equity lines are no longer deductible if acquired after 12/31/17

529 plans can be used for private schools

Alimony for divorces will no longer be deductible if they happened after ??? forgot the date.

Unreimbursed employee expenses are no longer deductible.

 

[orion41]

Sorry for asking, Does the IRSP being reduced to zero mean that if uninsured in 2018 I still owe the penalty in tax year 2018? Thanks in advance Best, J

 

[20Gauge]

Sorry for asking, Does the IRSP being reduced to zero mean that if uninsured in 2018 I still owe the penalty in tax year 2018? Thanks in advance Best, J

Yes, no, maybe........

If you are uninsured a tax will be assessed for 2018, but there are ways to avoid paying the penalty.

Here in GA as a non-expanded medicaid state we are usually able to get people into the not affordable category without too much trouble.

A short gap in coverage will get you off the hook for up to 2 months.

An in the end, you can check off a box in the tax software that says you don't want to pay it, ( Trump EO last year ) and it will not be assessed. Having said that, it doesn't mean that the IRS won't come after it at some point.

Having someone who knows the software and tax laws will help a great deal. If your tax guy is an EA, you should be fine.

 

[FaithfulSkeptic]

When federal income tax goes down, some states and local gov't see this as "extra money people did without before" and use it to justify raising state tax, property tax, or add another gas tax.