The first installment details the “Special Needs Children Tax.” According to Americans for Tax Reform, the Affordable Care Act includes a provision that limits contributions to flexible spending accounts. FSA contributions are currently unlimited, but Obamacare imposes a cap of $2,500. This cap goes into effect in January 2013.
Flexible spending accounts allow employees to set aside a portion of their wages before they are taxed to pay for qualified expenses. These contributions must be used within the same year or the funds are lost.
While FSAs can be used for many eligible expenses, such as copayments and doctor visits, they are also commonly used by the families of special needs children to pay for tuition at special schools. ATR notes that such tuition can exceed $14,000 per year. In the past, parents could contribute the entire amount to an FSA and pay their child’s tuition with tax-free dollars. Under Obamacare, they will be taxed on all but $2,500 of the amount. This means that special needs families could see an increase in their taxable income of $12,500 annually.
And they say Republicans are heartless.
Read this article on Examiner.com: