Health Coverage Expenses
Limits are increasing for tax-deferred Medical Savings Accounts (MSAs) for the self-employed. The maximum deductible amount for out-of-pocket expenses for self-only coverage ($4,500), the deductible limit on a plan with family coverage ($6,750), and the minimum deductible amount for annual family coverage ($4,500) have all increased by $50. The limit on out-of-pocket medical expenses under family coverage ($8,250) increases by $100.
It is important to value the importance of affordable tax services when incurring IRS penalties.
What about the Affordable Care Act
(aka Obamacare)? The President-Elect has vowed to repeal it and he may have sufficient support in Congress to do so, but for now, the ACA remains the law. People who avoided signing up for health insurance in anticipation of changes are still subject to the lack-of-coverage penalty. The penalty for the 2016 tax year increased to either 2.5% of household AGI or a maximum of $2,085 ($695 per adult, $347.50 per child). For the 2017 tax year, the percentage stays the same, but the per-person fee will be inflation-adjusted.