Medical deduction for alternative care allowed

/in /by

In a bench opinion, the U.S. Tax Court ruled that a taxpayer suffering from a spinal disease could deduct expenses for integrative medical care as a medical expense. Her doctor recommended the treatment, which addresses a full range of physical, emotional, mental, social, spiritual and environmental influences that affect a person’s health and may include acupuncture, massage, biofeedback, yoga, tai chi, meditation and other stress reduction programs. A bench opinion can’t be used as precedent. (Docket No 1282-16S)

Which taxes will be repealed under the proposed American Health Care Act (AHCA)…and when?

/in /by

The proposed bill, introduced by congressional Republicans to replace the Affordable Care Act, repeals several taxes, including individual and employer mandates (retroactive to 2016); the 3.8% net investment income tax (beginning in 2018); the 0.9% additional Medicare tax (2018); and the medical device excise tax (2018). The “Cadillac tax” on high-cost employer sponsored health plans is delayed until 2025 under the AHCA. It’s currently scheduled to go into effect in 2020

Replacement bill in Markup Process

/in /by

When it comes to the proposed bill that Republicans unveiled to replace the Affordable Care Act, the legislative process has ways to go. The replacement plan called the American Health Care Act, is beginning the “markup process” in two U.S. House of Representatives committees on March 8. The lawmakers will discuss, possibly amend and vote on the proposed bill. It then goes to the entire House. After that, the Senate could create its bill or vote on the House version. In other words, there will probably be changes to the proposed bill before it’s finalized.

IRA Rollover rules

/in /by

You can roll over funds from one IRA to another tax-free as long as you complete the rollover within 60 days. What if you miss the deadline? You may owe tax and an early-distribution penalty if you’re under age 59½. The IRS may waive the penalty if there are extenuating circumstances. In a recent private letter ruling, the IRS waived the 60-day requirement after a taxpayer failed to roll over the proceeds received from his IRA due to his medical condition, which included confusion, memory loss, and other cognitive impairment. (PLR 201709023)