If you pay anything in health insurance & in taxes, this is a must read, must

[truedelphi]

Comment.

Those of you who are following the current saga of the ObamaCare insurance program, set to operate next year, should consider the Supreme Court's ruling.

They decided that the ACA was a legitimate law because they established that the ACA was a tax. And that Congress clearly has the right to impose a tax.

If that is how they ruled, then it is important for every single person filing an income tax return to consider the following: it is NOT legal to pay taxes on taxes. So it stands to reason that every single penny any household pays in order to comply with ObamaCare must be monies deducted from their gross earnings.

Currently a person has to figure out if a health expense is over 7.5% of their income in order to deduct health related items, but I believe that the SCOTUS ruling has set a precedent for all of us to be able to at least get our health insurance premiums viewed as deductions.

[Boom Sound 416]

1. That's interesting

Could you provide a link?

[dawg]

2. "Not legal to pay taxes on taxes"

Who told you that?

[Yo_Mama]

3. You think you don't pay taxes on FICA taxes?

You sure do. You are totally wrong on the tax law bit.

You are mandated by law to pay income taxes on the FICA money you didn't get because it was withheld from your pay and sent to Treasury. Try deducting that amount from your taxable income on your next paycheck and let us know what the IRS has to say about it!

[truedelphi]

4. The Federal Government offers up a standard deductions, around

Last edited Tue Jul 2, 2013, 10:43 PM - Edit history (1)

$ 6,500 per person, or around $ 13,000 per couple, so that you FICA deduction is covered.

Unless you want to itemize it all out, but usually doing that won't get you past the amount that is the standard deduction. That standard deduction is significant as it considers the FICA, and also any state payments you might be making. Here in California, any time a person buys anything, except prescription meds and food, they are charged some 7.5%. So if a person living in California makes a significant purchase, say a car, they might wanna do the itemizing of the deductions.

[Yo_Mama]

5. You don't get to deduct FICA taxes from your income taxes - even if you itemize

You get to deduct state taxes (currently). But not FICA taxes.

[truedelphi]

6. I was wrong about what I said. But FICA is basically a contribution to

Your Social Security - so it is in a sense like a savings account. It is considered a tax only because the IRS does the collecting.

[roamer65]

7. Get ready for the individual mandate.

A nice little, pretty much "after tax", punitive assessment.
It will either reduce your refund or you will end up owing the government more "after tax" dollars.