Medicare Open Enrollment

Medicare open enrollment this year is from October 15-December 7. This is for any change to your Part D drug plan or your Medicare Advantage plan (if you have one) which will then become effective on 01/01/12. You may have noticed an increase in advertisements for plans since the open enrollment dates were moved up this year. 

Last year, a couple of the Part D drug plans decided to opt out of the Medicare program altogether. If you should receive a letter from your plan stating that they are doing that this year, you may choose another plan.

Reporting employer health care coverage on Form W-2

An Oct. 31 webinar will explain the Affordable Care Act provision that requires some employers to report health care coverage on Form W-2.
Related links:

• IR-2011-31, IRS Issues Interim Guidance on Informational Reporting of Employer-Sponsored Health Coverage
• Employer-Provided Health Coverage Informational Reporting Requirements: Frequently Asked Questions

Small Business Health Care Tax Credit

News Release IR-2011-90 reminds small businesses, small non-profit organizations and professional service providers that there is still time to claim the Small Business Health Care Tax Credit, and encourages them to find out if they or their clients are eligible to claim the credit on their tax returns as the upcoming filing extension tax deadlines near.

Health Insurance Deduction Reduces Self Employment Tax

In 2010, eligible self-employed individuals can use the self-employed health insurance deduction to reduce their social security self-employment tax liability in addition to their income tax liability. As in the past, eligible taxpayers claim this deduction on Form 1040 Line 29. But in 2010, eligible taxpayers can also enter this amount on Schedule SE Line 3, thus reducing net earnings from self-employment subject to the 15.3 percent social security self-employment tax.  More....