For families who are considering adoption the new Health Care Act has a new tax refund. For 2010, the maximum adoption credit is increased to a maximum of $13,170 per eligible child.  This increase applies to both non-special needs adoptions as well as special needs adoptions.  The deduction is the lesser of the total adoption expenses paid or $13,170.

For 2010, the credit is phased out when adjusted gross income exceeds $182,520 and will be completely phased out when it exceeds $222,520.

 The adoption credit is now a tax refund, rather than a tax credit.  It will be paid even if it exceeds the taxpayer’s tax liability.

Please contact us if you have any questions regarding this or any other tax credit changes for 2010.

Many business owners are confused on what changes they need to make now to their health care coverage for their employees.

Beginning in 2010, there is a minimum health care plan standard for benefits provided. All employers must provide the following coverage by the year 2013 or they will face penalties for not having a qualified health plan.

 Ambulatory patient services

Emergency services

Hospitalization

Maternity and newborn care

Mental health and substance use disorder services

Prescription drugs

Rehabilitative and habilitative services and devices

Laboratory services and preventive and wellness services

Pediatric services (including oral and vision care)

For existing plans to qualify for continuance, they must meet these minimum benefits. If you have any questions if your current coverage meets the new government standards contact your insurance representative or our office. There are more changes coming because of this new law so you will need to include the costs of this coverage for all of the employees on your payroll, including most of your part-time people, in your financial forecast/budget. We assist small business owners with planning and creating a forecast/budget.

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