Heathcare taxes that begin Jan. 1, 2013

Outside of the failing talks in Washington, which have America heading over the cliff at midnight tonight, there are several taxes that will take effect regardless. Beginning tomorrow there is a total of seven new taxes that will come in to effect as a result of the healthcare (Affordable Care Act) overhaul here in the States.

Here is a list of the taxes that will go into effect tomorrow, January 1, 2013.

1. Surtax on Investment Income

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The 3.8 percent surtax on investment income, meant to help pay for healthcare, goes into effect in 2013. It is the first surtax to be applied to capital gains and dividend income.

The tax affects only individuals with more than $200,000 in modified adjusted gross income (MAGI), and married couples filing jointly with more than $250,000 of MAGI.

2. Medicare Payroll Tax

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Is the Affordable Care Act really “the largest tax increase in the history of the world,” as Rush Limbaugh so grandiloquently put it? No. It’s not even the largest tax increase in the history of this country.

Or of the past 50 years. Or 20. It’s not even the biggest tax increase scheduled to take effect in the very near future. (That’s the expiration of the George W. Bush tax cuts slated for New Year’s Day.)

3. Tax on Medical Device Manufacturers

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The IRS finalized its regulations on the medical device excise tax and released interim guidance that provides safe harbor rules for determining constructive sales price. Beginning on Jan. 1, 2013, manufacturers, producers and importers are required to remit a 2.3% manufacturers excise tax levied on the sale of medical devices. There are exceptions for devices sold for further manufacture or export, and devices that are generally purchased by the public at retail for individual use.

4. Medical Bills Tax

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Rising medical costs seem to be on everyone's mind these days as the battle over health-care-reform legislation moves from Congress to the courts. Although the tax code provides a deduction for some medical costs, only a fraction of taxpayers are able to overcome the steep hurdle to claim it.

5. Elimination of tax deduction for employer-provided retirement Rx drug coverage in coordination with Medicare Part D

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Medicare beneficiaries enrolled in one of the top 10 Part D prescription drug plans will see premium increases in 2013 — with almost 6 million enrollees in seven of those plans facing hikes ranging from 11 to 23 percent — unless they switch to lower-cost plans.

6. $500,000 Annual Executive Compensation Limit for Health Insurance Executives

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Congress is using the new health- care law to limit tax deductions for executive pay at medical insurance companies in a bid to prevent corporate officers from personally benefiting from expanded enrollments.

The rule applies to UnitedHealth Group Inc., WellPoint Inc. and other insurers that earn 25 percent or more of premium revenue from health plans, cutting the deduction to $500,000 from $1 million on income per employee.

7. Flexible Spending Account Cap

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If you pay for medical care out of a tax-advantaged account such as a health savings account or flexible spending account, passage of the new health care reform law might make these so-called cafeteria plan benefits such as FSAs and HSAs a little less tasty when it comes tax time. The new law reduces the amount of money you can contribute to these accounts and shelter from Uncle Sam's reach. It also creates stricter rules about how the dollars you put away can be used. These new rules and penalties are designed to generate revenue to offset the cost of the health care reform law's health insurance tax credits and other spending.

I dont pay taxes but also dont go to the doctor unless of an emergency so how does this affect me?