* The 7.5% floor for deducting medical expenses rises to 10% (unless the client or spouse is 65 or older, in which case it stays at 7.5% until 2016).
* Healthcare flexible spending account contributions are capped at $2,500/year, with no contributions for over-the-counter medications.
* Taxpayers with earned income above $200,000 ($250,000 for joint filers) will pay an extra 0.8% Medicare tax on earned income above those amounts.
* Finally, taxpayers with incomes above those thresholds will pay an Orwellian-named “Unearned Income Medicare Contribution” of 3.8% on their “investment income” (defined as interest, dividends, capital gains, rents, royalties, and annuities).
Employers with more than 50 employees will have to offer health benefits or pay a penalty of up to $2,000 per employee. Generally, employers will have to pick up at least 50% of premium costs. There’s also a 90-day limit on waiting periods before offering new employees coverage.
* Most individuals who aren’t covered through their employer will have to maintain “minimum essential coverage” or pay individual penalties. We’ll talk about that more in a bit.