Tax law changes may be felt for many individual practitioners

By J.R. Armstrong, CPA, and Jodi Permenter, CPA

By passing the American Taxpayer Relief Act of 2012 (ATRA) in the early hours of Jan. 1, 2013, Congress managed to avoid, or at least postpone, the imminent and oft-discussed “fiscal cliff.”

Reform placing new importance on evaluating insurance plan participation

Identifying the insurance plans through which patients are most likely to obtain eye care coverage, applying to health plan provider panels, and evaluating health plan provider contracts are about to take on renewed importance, according to the AOA Third Party Center.

Bringing your children into practice can net tax benefits

By James R. Armstrong, CPA, and Jodi Permenter, CPA

Is your practice “family owned and operated?” Optometric practices are often passed down from generation to generation.

Optometrists who allow their children to work in their practices can help their offspring to determine if they would enjoy a career in eye care and, if so, help them get some experience in day-to-day practice operations.

Be aware of expiring tax breaks

By James R. Armstrong, CPA, and Jodi Permenter, CPA

Tax law changes have been in the news a lot lately and with good reason. Practicing optometrists, like other taxpayers, would do well to take a few moments as the end of the year – and the end of many current tax breaks – approaches and consider how pending increases in overall tax rates, the elimination or reduction of many deductions, and the applicability of the Alternative Minimum Tax to more taxpayers could affect their income. In many cases, they may find it could be advantageous to purchase that new instrumentation they have been wanting, make donations to their favorite charities, sell appreciated, long-term assets or take steps to help their children with education costs before the end of 2012.

Affordable Care Act has business tax implications

By James R. Armstrong, CPA, and Jodi Permenter, CPA

Editor’s note: This is Part 2 of a series on the Affordable Care Act (ACA) tax implications. It covers the implications for business owners.

Implications for business owners

The reform will affect businesses in different ways according to their size. Small businesses, those with fewer than 50 full-time employees, will not be required to provide health insurance coverage to their employees, and will not face fines for failing to provide coverage.

Major tax provisions of the health care law

The July 2012 Supreme Court ruling upholding what’s collectively referred to as the “Affordable Care Act” (ACA) resulted in a number of changes to the U.S. tax code. As such, there are a number of tax implications for individuals and businesses. Here is a closer look at some of the most important provisions for individuals and businesses.

Affordable Care Act has tax implications

By James R. Armstrong, CPA, and Jodi Permenter, CPA

On June 28, 2012, the Supreme Court upheld the constitutionality of President Obama’s Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act (know together as the Affordable Care Act).

The implementation of the Affordable Care Act (ACA) is expected to provide access to health insurance for 32 million currently uninsured Americans, drive innovation to reduce the rate health costs are rising, reform insurance markets to increase competition, and protect the insured’s rights by prohibiting the exclusion of people on the basis of pre-existing conditions, preventing annual or lifetime caps on coverage, seeking to end health insurance discrimination against optometrists and other health care providers (through the AOA-backed Harkin Amendment), banning the retroactive termination of benefits (known as rescission), and establishing minimum benefit packages, which includes the AOA-backed pediatric vision care essential benefit).

Tax credit can help ODs provide employee health insurance

By James R. Armstrong, CPA, and Jodi Permenter, CPA

According to a report issued by the White House Council of Economic Advisors, employers with fewer than 25 employees generally pay as much as 18 percent more for health insurance coverage than their larger counterparts. In order to level the playing field, the Internal Revenue Service (IRS) has created the Small Employers Health Insurance Credit (SEHIC) to reward small employers who provide health insurance for their employees. Businesses and non-profit organizations that pay at least 50 percent of their employee’s health insurance premiums could qualify for a credit of up to 35 percent of the premium paid.

EHR incentives are opportunities for ODs

By J.R. Armstrong, CPA, and Jodi Permenter, CPA

The increased use of electronic health records, or EHRs, is poised to dramatically change the health care industry in the United States. An EHR is a digital record that is stored in a standard format that allows records to be shared across care providers. The implementation of EHRs is thought to improve the quality of health care by reducing medical errors and providing physicians with decision support.

Evaluate the disability access tax credit

By J.R. Armstrong, CPA, and Jodi Permenter, CPA

The federal Americans with Disabilities Act (ADA) requires most businesses to make their services accessible to employees and customers with disabilities. To lessen the burden the act puts on small businesses, the Internal Revenue Service (IRS) created the Disability Access Credit.