With 2013 nearing the half-way point (already!), is it time for you to consider tax planning? If not you will want to consider sometime during the year. Almost every business decision comes with a tax consequence; therefore, knowing the effects and planning for the amount of tax you will owe at the end of the year is important. In addition, if you have any concerns about the new Affordable Care Act (ACA – Obamacare), now is the time to think about the effect it will have on your financial picture. Many of the calculations related to the ACA are based on your 2013 income.
Based on the 2013 income, some will be required to purchase insurance who haven’t carried it in the past, some will qualify for federal assistance to pay for part of the insurance, and some will be exempted from complying with the new insurance requirements. How will it affect you? While many of the details of the government plans’ cost through the exchanges have not been released, a general guideline (73 pages) of the calculations and requirements has been released by the Internal Revenue Service. Most likely, this will be part of your income tax reporting requirements which we will have to ask you about when you file your 2014 return. According to some online articles, the health care exchange in Kansas is planned to be operating by October 1, 2013. This will be the place to purchase the health care plans offered as a requirement of the ACA. Keep in mind this new consideration for your tax planning.