4th Quarter Tax Update Notices

Posted on 18. Oct, 2012 by in Uncategorized

Q4 Tax Update Notices

  • If your business provides health insurance to employees, check to see if you are eligible for the Small Business Health Insurance Credits


  • If your business provides health insurance to employees, check with your plan sponsor and make sure that either you as the employer or your plan sponsor is providing the required Medicare Part D annual notification of creditable coverage on behalf of Part D eligible individuals prior to October 15


  • FSA contributions for plans renewing in 2013 have a $2500 cap on Healthcare contributions


Several tax changes are occurring or likely in 2013 including:

  • Medicare tax surcharged for higher income individuals
  • Higher medical expense threshold, from 7.5% of AGI to 10% of AGI
  • Increase in capital gains taxes
  • Deduction of Section 179 and bonus depreciation tax breaks


Therefore for 2012:

  • Consider loading medical expenses if this is at all an option
  • Consider converting capital assets (Roth conversions etc) in 2012 rather than 2013
  • Take advantage of expiring business tax breaks in 2012
  • Pay attention to the portions of the Health Care Reform Act that will take effect in 2012 and 2013

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