Supreme Court rules on health care law

Supreme Court rules on health care law

In a 5 to 4 decision, the Supreme Court ruled on June 28 that most of the “Patient Protection and Affordable Care Act of 2010″ was constitutional. Chief Justice John Roberts wrote the majority opinion that rejected the individual insurance mandate under the commerce
clause of the Constitution, but upheld it as part of Congress’s power to tax.

In addition to upholding the individual insurance mandate, the ruling means that the tax changes
scheduled for 2013 were also upheld as constitutional. These include an increase in the Medicare tax on wages and a new Medicare tax on unearned income for single taxpayers with income over $200,000 and married couples with income over $250,000. Also, the threshold for deducting unreimbursed medical expenses for those under age 65 will increase to 10% of adjusted gross income, up from the current 7.5% threshold.

Though future tax legislation could change these provisions, you should be aware of them in your tax planning for this year and next. To discuss how this landmark Court decision could affect your tax situation, give us a call.

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