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Sunlight Tax

About
Blog
Workshops
Resources
Pricing
Let's Talk!
Hannah Cole
March 23, 2017
self-employment tax, tax policy

Some Real Numbers for Artists on the ACA Repeal

Hannah Cole
March 23, 2017
self-employment tax, tax policy
GOP Rep. Jason Chaffetz says that the American people may need to choose between a new iPhone or health care when trying to afford insurance under the new GOP bill that would replace Obamacare. Image via: istockphoto

GOP Rep. Jason Chaffetz says that the American people may need to choose between a new iPhone or health care when trying to afford insurance under the new GOP bill that would replace Obamacare. Image via: istockphoto

When I went back to school for accounting, I never thought I’d get an education in healthcare. But the Affordable Care Act (ACA, aka Obamacare) forced tax preparers like me into learning about our healthcare system, because most of the credits and penalties are reconciled on the tax return. As an accountant for artists, I see the direct benefits of the ACA on my clients. I am required, per the ACA, to find out if my clients were covered by health insurance all year, and if not, I calculate the penalty for each month they weren’t. I record the premiums my clients pay, which can be a big deduction for a freelance arts worker. And I see the monthly subsidies that they get, because I reconcile them on the annual tax return (the “Premium Tax Credit”). I also calculate the 3.8% Net Investment Income Tax and the additional .9% Medicare tax for my very highest-income clients – these are the additional taxes on the top income earners that effectively pay for the subsidies provided by the ACA. This amount is only calculated on the very top dollars of their income and it hits a proportionately tiny slice of my clients.

Given this background, I have some insights on what the new Republican proposal, the “American Health Care Act” (ACHA, aka Trumpcare) would do to you, me, and our federal budget. It’s not good.  Read more...

Tagged: self employment tax, healthcare savings account, health care, freelance tax

Newer PostCharitable Deductions for You, Me and Warren Buffet
Older PostThe SEP IRA: A Lovesong

Hannah Cole's writing on taxes and money in the art world now appears monthly in Hyperallergic.

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  • personal finance
    • Mar 11, 2018 Money and Happiness: Artists' Superpower
    • Feb 22, 2018 What's the Deal with Receipts?
    • Jun 16, 2017 Business and Personal Accounts: Keep ’em Separated
    • Jun 2, 2017 The Personal Finance Attitude Adjustment
    • May 19, 2017 A Personal Finance Cheat Sheet for the Overwhelmed
  • retirement savings
    • Mar 11, 2018 Money and Happiness: Artists' Superpower
    • May 19, 2017 A Personal Finance Cheat Sheet for the Overwhelmed
    • Mar 14, 2017 The SEP IRA: A Lovesong
    • May 3, 2016 The Second Best Time is Now
  • sales tax
    • Dec 13, 2018 Sales Tax for Artists Q+A with Rose Lulis
  • self-employment tax
    • Dec 27, 2018 Translating the New Tax Bill for Small Businesses
    • Oct 24, 2018 No, You Really Can't Get a Deduction for that Artwork You Donated to Charity
    • Feb 22, 2018 What's the Deal with Receipts?
    • Apr 18, 2017 Set up For Your Best Year Ever: A Tax Day How-To
    • Mar 23, 2017 Some Real Numbers for Artists on the ACA Repeal
    • Mar 14, 2017 The SEP IRA: A Lovesong
    • Aug 4, 2016 Estimated Quarterly Taxes for the New Freelancer
    • May 7, 2016 Self-Employment Tax for the New Freelancer
  • tax policy
    • Dec 27, 2018 Translating the New Tax Bill for Small Businesses
    • Sep 24, 2018 How the New Tax Cuts and Jobs Act Impacts the Art World
    • Feb 22, 2018 What's the Deal with Receipts?
    • Jan 30, 2018 How The New Tax Bill Affects Freelancers
    • May 2, 2017 The Estate Tax: An Economic Justice No-Brainer
    • Apr 4, 2017 Charitable Deductions for You, Me and Warren Buffet
    • Mar 23, 2017 Some Real Numbers for Artists on the ACA Repeal
    • Nov 15, 2016 How Donald Trump's Tax Plan Will Affect Arts Workers: There's Bad Stuff Coming
  • tax savings
    • Dec 27, 2018 Translating the New Tax Bill for Small Businesses
    • Apr 18, 2017 Set up For Your Best Year Ever: A Tax Day How-To
    • Mar 14, 2017 The SEP IRA: A Lovesong
    • Feb 6, 2017 Rent Too Damn High? Deduct Your Home Studio.
    • Nov 1, 2016 Tax Shelters for the Working Artist
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Sunlight Tax, 3 Mulvaney Street, Asheville, NC 28803hannah@sunlighttax.com

Want to Handle Your Money Better?

Get my 15 minute video on how the new tax law will affect you, and how you can use it to save money. I’ll also send you bimonthly tips for creative freelancers to arm yourself with knowledge and handle your money better.

I respect your privacy. I will never share your email.

Thank you!