What ObamaCare Means for You

President Obama's Affordable Care Act, which was deemed constitutional Thursday by the Supreme Court, includes some major tax changes that will take effect next year. Here's a refresher course on how sweeping health-care reform will impact individual taxpayers like you.
Medicare Tax

Right now, the Medicare tax on salary and/or self-employment (SE) income is 2.9%. If you're an employee, 1.45% is withheld from your paychecks, and the other 1.45% is paid by your employer. If you're self-employed, you pay the whole 2.9% yourself.
Starting in 2013, an extra 0.9% Medicare tax will be charged on: (1) salary and/or SE income above $200,000 for an unmarried individual, (2) combined salary and/or SE income above $250,000 for a married joint-filing couple, and (3) salary and/or SE income above $125,000 for those who use married filing separate status. For self-employed individuals, the additional 0.9% Medicare tax hit will come in the form of a higher SE bill.
Medicare Tax on Investment Income
Right now, the maximum federal income tax rate on long-term capital gains and dividends is only 15%. Starting in 2013, the maximum rate on long-term gains is scheduled to go up to 20% and the maximum rate on dividends is scheduled to increase to 39.6% as the so-called Bush tax cuts expire.
But that's not all. Also starting in 2013, all or part of the net investment income, including long-term capital gains and dividends, collected by higher-income folks can get socked with an additional 3.8% "Medicare contribution tax." Therefore, the maximum federal rate on long-term gains for 2013 and beyond will actually be 23.8% (versus the current 15%) and the maximum rate on dividends will be a whopping 43.4% (versus the current 15%). Yikes!
The additional 3.8% Medicare tax will not apply unless your adjusted gross income (AGI) exceeds: (1) $200,000 if you're unmarried, (2) $250,000 if you're a married joint-filer, or (3) $125,000 if you use married filing separate status.
The additional 3.8% Medicare tax will apply to the lesser of your net investment income or the amount of AGI in excess of the applicable threshold. Net investment income includes interest, dividends, royalties, annuities, rents, income from passive business activities, income from trading in financial instruments or commodities, and gains from assets held for investment like stock and other securities. (Gains from assets held for business purposes are not subject to the extra tax.)
For example, a married joint-filing couple with AGI of $265,000 and $60,000 of net investment income would pay the 3.8% tax on $15,000 (the amount of excess AGI). If the same couple has AGI of $350,000, they would pay the 3.8% tax on $60,000 (the entire amount of their net investment income).
$2,500 Cap on Health-Care FSA Contributions
Right now, there's no tax-law limit on contributions to your employer's healthcare flexible spending account (FSA) plan (although many plan impose their own limits). Amounts you contribute to the FSA plan are subtracted from your taxable salary. Then you can use the funds to reimburse yourself tax-free to cover qualified medical expenses. Good deal! Starting in 2013, however, the maximum annual FSA contribution for each employee will be capped at only $2,500.
 http://www.smartmoney.com/taxes/income/what-obamacare-may-mean-for-taxes-1335896160486/

With FEMA's 'No,' Governor Urges Citizens to Help Tornado Victims

RICHMOND – Gov. Bob McDonnell is encouraging citizens to provide aid for victims of the April tornadoes, since the Federal Emergency Management Agency has declined Virginia’s request for disaster assistance.


The storm outbreak from April 8-28 left 10 dead, more than 100 injured, 212 homes destroyed and more than 1,050 homes and businesses damaged across the commonwealth.
The April 16 tornado in Gloucester County alone destroyed 10 structures and damaged nearly 180 others, causing an estimated $8.3 million in damages. This is in addition to the $16 million in damages to Page Middle School as a result of the storm, according to the Gloucester-Mathews Gazette-Journal.

Earlier this month, Virginia asked for federal disaster assistance for the counties of Halifax, Pulaski and Washington; FEMA denied the request.

State officials made an additional request that FEMA include April 8-28 as one incident period so other localities, such as Gloucester and Middlesex, could be added later. That request also was denied.

Several factors contributed to FEMA’s decision. According to the Virginia Department of Emergency Management, many of the homes that were destroyed or damaged were insured, and many of the homes affected by the mid-April tornadoes were vacation or secondary homes.

Moreover, the damage in Virginia was not as severe as in other states such as Alabama.

The governor is considering an appeal of FEMA’s decision and has pledged to contribute state disaster recovery funding to assist affected localities.

For now, McDonnell is urging private companies, non-profit organizations, volunteers, faith-based organizations and citizens to assist the recovery efforts in any way possible.

“Times of natural disasters and other hardships bring out the best in Virginians. Those who are directly impacted are resilient and do not give up. Those who have not suffered a loss themselves step in to lend a helping hand, financial support and assistance to those who are in need,” McDonnell said.

To donate to the governor’s tornado relief fund, send a check payable to the Treasurer of Virginia, with the note “tornado relief” in the memo line, to the comptroller’s office, P.O. Box 1971, Richmond, Va., 23218. Donations are tax-deductible.

For more information on the fund and other ways to help, click here to visit the Virginia Department of Emergency Management’s website.

fema news sunday may 15th 2011

• Agriculture Secretary Vilsack, FEMA Administrator Fugate Statement on Opening of Morganza Spillway, May 14
• SBA Regional Administrator Visits Disaster Survivors And Advises That Loans Also Are For Homeowners And Renters, May 14
• There Are Many Reasons For A Letter From FEMA, May 14
• Federal Aid Programs For State Of Oklahoma Disaster Recovery, May 13
• President Declares A Major Disaster For Oklahoma, May 13
• Federal Aid Programs For State Of South Dakota Disaster Recovery, May 13
• President Declares A Major Disaster For South Dakota, May 13
• Six Additional Disaster Recovery Centers Open in Alabama, May 13
• Help Us Help You: Visit a Disaster Recovery Center, May 13
• Weekly Registration Jumps By 20,000 For Alabama Disaster, May 13
• Disaster Recovery Center New Hours Of Operation, May 13
• Tell Your Neighbor To Register For Disaster Assistance, May 13
• Tornado Survivors Get Nearly $9 Million In Disaster Assistance, May 13
• Three Disaster Recovery Centers To Close, May 13
• Mobile Disaster Recovery Center To Open In Halifax County, May 13
• Crawford County Flood Risk Open House is Set for May 26, May 12
• Louisiana Residents Urged To Be Safe And Know The Facts About Flood Insurance, May 12
• Flood Survivors Urged To Register With FEMA For Assistance, May 12
• Tips For Disaster Survivors To Speed Recovery Aid, May 12
• Help May Be Available To Remove Debris From Your Property, May 12
• Use Disaster Funds Wisely And For Intended Purpose, May 12
• Children's Involvement In Disaster Planning Calms Fear, May 12
• National Emergency Medical Services Week 15-21 May 2011, May 11
• Federal Aid Programs For State Of Mississippi Disaster Recovery, May 11
• President Declares A Major Disaster For Mississippi, May 11

BP hires former FEMA director

(CBS) - BP is hoping a former FEMA director can help improve the company's response to he gulf oil spill.

The energy giant has hired James Lee Witt, who headed FEMA during the Clinton years.

In Florida, the first beach has been closed because of oil, and Mississippi is also fighting the mess.