The Obama Care

The official name of the “ObamaCare” is the Affordable Care Act (ACA), which signed into law to reform the health care industry by President Barack Obama on March 23, 2010.

ObamaCare’s main goal is giving more Americans access to affordable, quality health insurance and to reduce the growth in U.S. health care spending.

The aim is simple – to extend health insurance coverage to some of the estimated 15% of the US population who lack it.

Those people receive no coverage from their employers and are not covered by US health programs for the poor and elderly.

To achieve this goal, the law requires all Americans to have health insurance,

But, offers subsidies to make coverage more affordable and aims to reduce the cost of insurance by bringing younger, healthier people into the medical coverage system.

There are many problems with the Obama care

It’s extremely complicated it offers four types of insurance policy levels: Bronze, Silver, Gold and Platinum.

So, you’ve got to figure out which level you want AND compare the co-pays, deductibles and co-insurance levels between the different providers.

The tax you pay if you don’t buy insurance is tough to understand.  And there are many more issues that will remain unsolved.

I.e Experts disagree whether the ACA reduces the deficit, Higher income families pay additional Medicare taxes,

Health care and health insurance companies pay additional taxes to help pay for Obamacare’s benefits.

Starting 2016, the tax was raised to 2.5 percent of your adjusted gross income (AGI).

The tax has a maximum level of $4,500 annually for individuals and $12,000 for families.

It’s tax will never be less than a minimum flat tax of $695 per adult, and $347.50 per child, capped at $2,085 per family. using itemize?

You can deduct the medical expenses that aren’t covered by your health insurance and exceed 10 percent of the income.

Do you make more than $200,000 a year ($250,000 for married couples filing jointly, and $125,000 for married couples filing separately)?

You will pay an additional 0.9 percent Medicare hospital tax on your income and self-employment profits above this threshold.

You are also taxed an extra 3.8 percent on investment income such as dividends and capital gains, that are above the threshold (NIT).

If your income is 138 percent or less of the poverty level (roughly $16,000 for an individual, or $33,000 for a family of four), you won’t have to pay the tax.

You also won’t have to pay the tax if:

1. Your income is so low that coverage is un-affordable
2. You aren’t required to file a tax return
3. You’re a member of an Indian tribe
4. You participate in a health care sharing ministry or are a member of a religion that objects to health insurance
5.  You’re living in a foreign country.

And what President Donald Trump thinks about that?

He signed an executive order to “ease the burden” of Obamacare on his first day in office. It directs agencies to do what they can within the existing law to lift the Affordable Care Act’s regulations.

The Republicans don’t have the 60-vote majority in the Senate to repeal the Affordable Care Act. Instead, they will use the budget process to dismantle spending and revenue portions of the ACA. That means they can repeal the middle-class subsidies and end Medicaid expansion. They can also eliminate Obamacare taxes and abolish the individual mandate.

To claim the Exemption, you should file a Tax Return and use the form 8965. If you have any further questions, or you need to consult on your personal situation, you may contact us on Email: [email protected] or phone: +972 (073)7861701.

Tax4US team!