Will the New Health Care Law Cause My Taxes To Go Up?

The new taxes mostly affect people with high incomes.

• Beginning in 2013, if you are a married couple with income of more than $250,000 a year or an individual making more than $200,000 a year, you will pay an extra 0.9 percent in Medicare payroll taxes and a new 3.8 percent tax on unearned income from, for example, investment interest, annuities, rents. This tax does not include Social Security benefits, pensions or IRAs.

• Whatever your income, beginning next year if you have a health savings account, the tax on your withdrawals for anything other than approved medical expenses will rise from 10 to 20 percent.

• Starting in 2013, you can take a tax deduction only on medical expenses that exceed 10 percent of your income—up from 7.5 percent now. This change is postponed until 2016 for taxpayers age 65 and older.

More Insights About the New Health Care Law

• Five Things in the Law That May Surprise You
• Who Must Have Insurance?
• Coverage as Good as Congress’?
• How Will the New Law Affect My Doctors?

Other Insurance Situations

• If You Receive Employer Insurance
• If You Run a Small Business or Work for One
• If You’re Uninsured or Buying Your Own Insurance
• If You Have a Moderate or Low Income
• Just Where Are Those Savings Coming From?