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Hidden Obamacare Tax
Internal Revenue Service ^ | June 25, 2012 | Jackie B. Manasterli

Posted on 11/15/2012 1:40:41 PM PST by NonLinear

Hidden tax resulting from Obamacare. Flexible Spending Accounts (FSA) pre-tax deduction is now limited to $2,500. That's not $2,500 per person, that is the total allowed pre-tax deduction.

This is effectively a tax on the $2,500 that is no longer allowed for a working person with a stay-at-home spouse. Last year's limit was $5,000.

However, if both people are working, then each can elect the $2,500 deduction from their checks.


TOPICS: Business/Economy; Health/Medicine
KEYWORDS: benefits; obamacare; taxes
The $2,500 limit on salary reduction contributions to a health FSA applies on an employee-by-employee basis. Thus, $2,500 (as indexed for inflation) is the maximum salary reduction contribution each employee may make for a plan year, regardless of the number of other individuals (for example, a spouse, dependents, or adult children (see § 105(b)) whose medical expenses are reimbursable under the employee’s health FSA. Consistent with this rule, if each of two spouses is eligible to elect salary reduction contributions to an FSA, each spouse may elect to make salary reduction contributions of up to $2,500 (as indexed for inflation) to his or her health FSA, even if both participate in the same health FSA sponsored by the same employer.
1 posted on 11/15/2012 1:40:52 PM PST by NonLinear
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To: NonLinear

Fine. Does not effect me. I’ve never used HSA.


2 posted on 11/15/2012 1:44:11 PM PST by Sequoyah101
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To: NonLinear

Flex accounts imply the ability to make sound personal choices based on gathering information and applying logic.

Prohibited by the Baraqqi regime.
sorry about that....


3 posted on 11/15/2012 1:45:30 PM PST by nascarnation (Baraq's bankruptcy: 2016)
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To: NonLinear
Don't qoute me on this, but their was never a $5,000 cap, it was technically unlimited. Corporations gave us the $5,000 cap. It is now $2,500 per person, and if a husband and wife each have one they still could get a $5000 total..

Freeper CPA's Enrolled Agents tell me where my research is wrong and I will stand corrected...

4 posted on 11/15/2012 2:08:00 PM PST by taildragger (( Tighten the 5 point harness and brace for Impact Freepers, ya know it's coming..... ))
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To: nascarnation

can retirees on medicare withmedigap have a FSA?


5 posted on 11/15/2012 2:08:02 PM PST by cajungirl
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To: Sequoyah101

Way to take a principled stance on taxation. It’s that type of rationale that gives us a progressive tax rate; the lower you are on the pyramid, the easier it is to say “Hey, it’s not like I’ll ever make that much money so who cares how much we tax the rich?”


6 posted on 11/15/2012 2:10:40 PM PST by ruiner
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To: Sequoyah101

OK then, you are ok with liberty being abridged - as long as it’s not a liberty you took advantage of? Think about it.


7 posted on 11/15/2012 2:15:28 PM PST by C. Edmund Wright ("WTF?: How Karl Rove and the Establishment Lost....Again")
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To: cajungirl

If I read this correctly:

http://www.irs.gov/publications/p969/ar02.html#en_US_2011_publink1000204174

The answer is “only if the person is still employed”

But I welcome other opinions on this, because I’m not very confident in my analysis.


8 posted on 11/15/2012 2:15:34 PM PST by nascarnation (Baraq's bankruptcy: 2016)
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To: Sequoyah101

Selfish little brat, aren’t ya!


9 posted on 11/15/2012 2:18:54 PM PST by goodnesswins (R.I.P. Doherty, Smith, Stevens, Woods.)
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*


10 posted on 11/15/2012 2:31:08 PM PST by PMAS (All that is necessary for the triumph of evil is that good men do nothing)
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To: PMAS

This is actually hilarious. Whether IRS or company limited, a single mom in 2012 could avoid taxes on $5,000 for medical expenses. By dropping the per employee cap, that single mom just added $2500 in taxable income, while dual income couples can still set aside $5k. So the group who gets the tax increase, and is hurt the most by this provision of Obamacare, are the single moms that the left feel need the most help. Way to speak with forked tongues, liberals.


11 posted on 11/15/2012 3:08:09 PM PST by Optimistic
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To: goodnesswins

Yup. Just as selfish and far thinking as the mental midgets who vote for obastard. Anything bad that happens to them suits me right down to the ground.


12 posted on 11/15/2012 3:28:24 PM PST by Sequoyah101
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To: Sequoyah101

UH....spending accounts are used most by WORKING people, and probably even more by conservatives who have brains.


13 posted on 11/15/2012 3:45:48 PM PST by goodnesswins (R.I.P. Doherty, Smith, Stevens, Woods.)
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To: C. Edmund Wright

As long as it is not my liberty and punishes anyone who voted for this abortion... Yes, of course.

To my point as Optimistic writes:

“This is actually hilarious. Whether IRS or company limited, a single mom in 2012 could avoid taxes on $5,000 for medical expenses. By dropping the per employee cap, that single mom just added $2500 in taxable income, while dual income couples can still set aside $5k. So the group who gets the tax increase, and is hurt the most by this provision of Obamacare, are the single moms that the left feel need the most help. Way to speak with forked tongues, liberals.”

This also includes the likes of the pea brain in Ohio who has now had her food stamps cut. “they told me that Romney would cut my food stamps.” Meaning obastard would not.... happened anyway. Toughskyshitsky for the pea brain. You got lied to, again... ha, ha, ha, ha.

Let their savior and friend obastard take care of them just like this. They voted for him and they deserve all the government they get. I hope even worse comes.

I have thought about it. A lot.

No understanding will come without painful consequence. All will suffer and must suffer greatly. The more and the sooner the better.

Fair has left my vocabulary. I don’t care about fair any longer. I care about right and wrong. It is right that those who wanted this mess receive the most possible pain from it. Next in line are those who didn’t oppose it by voting against it. Everybody else will just have to suck it up.

Our life is as simple as the Aesop Fable of the Ant and the Grasshopper. Just as simple as the fact that no company can survive if all are paid full time and only half produce revenue. Just as simple as the fact that socialism has not worked anywhere it has been tried... never ever.

Give your equal liberty to all including those who oppose it and never paid a thing for it. Keep it up. Equal liberty and representation is what got us to this point where illegals now enjoy virtually all the rights and privileges of citizenship. All just because some did not win the lottery of life and birth location some damn fool feels sorry for them. Feeling sorry is not a useful or quality emotion. Assuaging sorrow with money and rights of someone else is a crime against all humanity. That is something to think about.

Have a nice day.


14 posted on 11/15/2012 3:47:11 PM PST by Sequoyah101
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To: goodnesswins

Uh..... I know that.

So far as brains are concerned.... spending accounts are just another accession of your liberty since they are ultimately government controlled. Just my opinion but it is just another way for the feds to get into my life. No thanks, I won’t do that willingly.

To many agreements with the feds are like giving them the gun and loading it for them.

Just my opinion and you are welcome to yours of course.


15 posted on 11/15/2012 3:55:19 PM PST by Sequoyah101
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To: NonLinear

FSA (Flexible Spending Account) is different form HSA (Health Savings Account). I have had both and but I now only have an HSA. I believe the FSA is a “use it or lose it” fund whereas HSA is deposited into a bank account which is yours forever. Both are not taxed and have a limited per year. So, that being said, does this apply to HSA as well?


16 posted on 11/15/2012 4:35:55 PM PST by klimeckg ("The penalty good men pay for indifference to public affairs is to be ruled by evil men.")
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To: Sequoyah101

You are as ignorant as you are selfish. No one who has an HSA voted for this abortion, as you call it, so you are happily punishing those who stood with you in this fight - out of your selfishness and ignorance.

You have a nice day, which will be easier in your ignorance.


17 posted on 11/15/2012 4:45:58 PM PST by C. Edmund Wright ("WTF?: How Karl Rove and the Establishment Lost....Again")
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To: klimeckg
No. HSA's have a different limit.

I believe the FSA is a “use it or lose it” fund whereas HSA is deposited into a bank account which is yours forever.

But remember, forever is a long time...
18 posted on 11/15/2012 6:14:04 PM PST by NonLinear (Giving money and power to government is like giving whiskey and car keys to teenage boys.)
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To: C. Edmund Wright

“No one who has an HSA voted for this abortion, as you call it,”

Oh, I seriously doubt that very much.

I got news for you. I’m not punishing anybody and I’m not happy about the damage done to anyone who is innocent. Obama is doing all the punishing.

Those who voted for him and those who didn’t vote against him paved the way.

It’s all just collateral damage. There is going to be lots of that before this is all over. It will take years.

Don’t get emotional.

Life’s a bitch ain’t it?


19 posted on 11/15/2012 8:11:23 PM PST by Sequoyah101
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To: Sequoyah101

You have not demonstrated any understanding of an HSA, or the motivations of those who would have one. You may know all that but there is nothing in anything you have said to demonstrate it.


20 posted on 11/15/2012 8:44:58 PM PST by C. Edmund Wright ("WTF?: How Karl Rove and the Establishment Lost....Again")
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To: C. Edmund Wright

Ever watch a cat play with a mouse?

I’m bored now and going to bed.


21 posted on 11/15/2012 9:03:35 PM PST by Sequoyah101
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To: Sequoyah101

enjoy your cheese rodent


22 posted on 11/15/2012 9:56:05 PM PST by C. Edmund Wright ("WTF?: How Karl Rove and the Establishment Lost....Again")
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To: klimeckg

No. HSA rules are still pretty close to last year.


23 posted on 11/16/2012 4:20:28 PM PST by NonLinear (Giving money and power to government is like giving whiskey and car keys to teenage boys.)
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