Healthcare Reform - Changes in 2013
- Individuals earning $200,000 a year or couples making $250,000 will pay increased Medicare payroll tax of 2.35% on earned income – up from the current 1.45%. A separate tax of 3.8% on unearned income such as dividends interest and other income will be added.
- Medical expense contributions to flexible spending accounts (FSAs) are limited to $2,500 annually – indexed for inflation.
- The threshold for claiming itemized medical expense deductions increased to 10% of income from the current 7.5%.
