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Bogus Emails Being Spread Around About Health Care Reform Taxes

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    Bogus Emails Being Spread Around About Health Care Reform Taxes

    I am getting sick of all the bogus emails that are being spread around about the tax laws in the new Health Care Reform. People keep sending me this stuff and I have to keep answer them.

    For those who are also receiving these, here is the answers that I am giving:

    Bogus email #1 says:

    Under the new health care bill - did you know that all real estate transactions are now subject to a 3.8% Sales Tax? The bulk of these new taxes don't kick in until 2013 (presumably after Obamas re-election). If you sell your $400,000 home, there will be a $15,200 tax. This bill is set to screw the retiring generation who often downsize their homes.
    Answer: False, there is no sales tax under the new law.

    There is a new 3.8% Medicare tax on investment income when a single taxpayer’s income exceeds $200,000, or a married couple’s income filing jointly exceeds $250,000. Investment income includes the sale of real estate. However, the 3.8% tax applies to the net gain from the sale of investment real estate, not the gross sale, as implied in the email. Thus, if the taxpayer has a cost basis of $300,000 in that $400,000 sale, the 3.8% applies to the $100,000 gain, not the $400,000 sale price.

    Also, the 3.8% tax only applies to TAXABLE gains. Non-taxable income is not subject to the 3.8% tax. If the real estate is the sale of your principal residence, as implied in the email, up to $250,000 of gain for a single person, or $500,000 of gain for a married couple is excluded from income. Thus, if that $400,000 sale of your home has been your principal residence for at least 2 out of the last 5 years, you are married, and you only paid $10,000 for the house 40 years ago, the $390,000 gain is not subject to any tax, even if your other income is high enough to be subject to the 3.8% Medicare tax.

    Bogus email #2 says:

    Should you want to verify this, go to http://www.thomas.gov/, enter "HR 3590" in the search box, highlight "Bill Number" and look for "CRS Summaries." This is what you'll find.
    Title IX Revenue Provisions-Subtitle A: Revenue Offset "(Sec. 9002) Requires employers to include in the W-2 form of each employee the aggregate cost of applicable employer-sponsored group health coverage that is excludable from the employee's gross income (excluding the value of contributions to flexible spending arrangements)."
    Starting in 2011-next year-the W-2 tax form sent by your employer will be increased to show the value of whatever health insurance you are provided.
    It doesn't matter if you're retired. Your gross income WILL go up by the amount of insurance your employer paid for. So you'll be required to pay taxes on a larger sum of money that you actually received. Take the tax form you just finished for 2009 and see what $15,000.00 or $20,000.00 additional gross income does to your tax debt. That's what you'll pay next year.
    For many it puts you into a much higher bracket. This is how the government is going to buy insurance for fifteen (15) percent that don't have insurance and it's only part of the tax increases, but it's not really a "tax increase" as such, it a redefinition of your taxable income.
    Answer: False, the law quoted says nothing about including health insurance benefits in taxable income on the W-2.

    The requirement to report the health benefits on the W-2 is for information purposes, similar to the way non-taxable 401(k) contributions are required to be reported. The law does NOT require the benefits to be included in income. Section 105 and 106 of the Internal Revenue Code exclude employer provided health benefits from an employee’s income. The new Health Care Reform law did not amend these code sections.

    #2
    Thank you

    Yes, I've been getting those comments, too. I appreciate your answers and will copy them often, I'm sure! Thank you for sharing.

    Comment


      #3
      Bogus emails.... Capitalize on the Right Answer.

      Good replies. We should have a template section here where we agree on the topic / answer and all reply the same way. That way there's unity. Use these emails to promote your tax business.

      This is why you need to have your taxes prepared by someone who is informed and educated in these areas.
      Looking to clear up all the Bogus emails floating around about new tax laws & health care bills? Are you hearing three different answers to the same question? Hire a Tax Professional, we're dedicated, educated & emancipated in the reality of the tax laws, new & old!

      Why just this morning one of my clients was trying to fill out a FAFSA for & was using all the wrong figures. In your replies you should have a link to your website or email.
      Last edited by MAJ; 08-02-2010, 08:01 PM.
      Matthew Jones
      Tax Preparation
      Computer Consultant


      Tax Season is here!
      Make sure everything is working, extra ink or toner is available, Advil in top drawer!

      Comment


        #4
        Thanks for this post. It helps to clarify things and for those of us who are not "research efficient" saves a lot of time.

        LT
        Only in government or politics is a "cut in spending" really an increase. It's just not as much of an increase as they wanted it to be, therefore a "cut".

        Comment


          #5
          It goes beyond Health Care reform, expiring Bush tax cuts..

          One of my clients forwarded me an email about the Bush tax cuts with so much BS my pc started to smell. Something I will never understand about those who make up these lies and still refer to themselves as "conservatives" which I think is a kick in the gut to the real conservatives. No politics intended.

          Comment


            #6
            Google is your friend...

            You can find almost anything on Google... That's your friend...

            Did you know you can TEXT Google? Send a text message to 466453 (that spells Google on the phone).

            In the body of the message put:

            Movies
            08723 <replace with your zip code>

            When you get a reply you type the movie # (1,2,3,etc) and send. You'll get movie times and info on the movie.

            Text TIPS and you'll get other info - how to get sport scores, weather, phone numbers ,etc.
            It's a great tool. I use texting alot now for my clients to send/ask them quick questions.

            Also, the new version of the TRX (Tax Works) Business Management software will have the ability to send TXT reminders to your clients. Great thought!!
            Matthew Jones
            Tax Preparation
            Computer Consultant


            Tax Season is here!
            Make sure everything is working, extra ink or toner is available, Advil in top drawer!

            Comment


              #7
              Received One Today

              This one was Bees Knees Example #1.

              In fact it was word-for-word exactly the same as his example. Incredible how the exact wording can be forwarded across the nation now that the internet brings us as close as e-mail.

              To put this in perspective, downtown Minneapolis is 996 miles from my hometown.

              I received this as a multiple addressee. I replied in much the same fashion as Bees, and hit the "Reply to All" button.

              Comment


                #8
                I don’t want this to turn into a political debate, other than I think it hurts your argument when you get tricked into spreading false information. It is just like spreading gossip about someone when it is not true. It makes you look like a fool and hurts your reputation.

                There are plenty of legitimate arguments to be made on both sides of the Health Care debate. You do your side no favor by passing on bogus emails about fictitious information.

                Comment


                  #9
                  Bogus emails

                  Has anyone been able to find out who started the original email? This sort of stuff can be started by anyone from either side.

                  Comment


                    #10
                    Originally posted by DTS View Post
                    Has anyone been able to find out who started the original email? This sort of stuff can be started by anyone from either side.

                    It wouldn’t surprise me if someone in favor of the health care legislation started it, just to make those who oppose it look foolish when they pass on false information.

                    I got another email from my aunt this morning with anti Muslim rhetoric. The email contains photos of 450 Muslim Grooms at a mass wedding, and each appears to have a bride under the age of 10. The email talks about how barbaric these Muslims are to marry little girls so young.

                    It turns out when doing a Google search on the story; the little girls were not the brides. They are similar to what we would call flower girls in Western ceremonies.

                    Of course only a fraction of those receiving these types of emails actually investigate to see if the story is true. I keep sending stuff back to my aunt proving the emails are bogus, but she keeps sending them anyway. I guess I may have to mark her email address as spam.

                    Comment


                      #11
                      Bees: You shouldn't treat your aunt in this manner. When someone's mind is made up, it's downright inconsiderate to confuse them with the facts.
                      "The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith

                      Comment


                        #12
                        Mind Made Up

                        I got an email from an internet contact telling a fanciful story about the origin of the song "Taps" so I sent him the truth referenced to the websites of the US Military Academy and the US Army. He wrote back that he preferred to believe the fanciful version.

                        Comment


                          #13
                          Big Fish

                          I caught the world record Northern in Canada a few years back...must have been at least 250lbs.
                          Attached Files

                          Comment


                            #14
                            Trouble is....It was only in my mind....
                            Attached Files

                            Comment


                              #15
                              Anyone can doctor a picture with the right computer program...
                              Attached Files

                              Comment

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