Last week, the highest court in the nation ruled on two groundbreaking cases that will have major tax implications for individual citizens.
First, in a 6-3 decision, the Supreme Court ruled to uphold the tax subsidies under the Patient Protection and Affordable Care Act (ACA). The ruling essentially allows the federal government to provide tax subsidies to help poor and middle-class citizens to buy health insurance.
The tax credits can only be applicable if the taxpayer has enrolled in an insurance plan through an exchange that has been established by the State. The ruling reserves these tax benefits for an estimated 6.4 million Americans.
Here’s a video of President Obama praising the ruling:
In addition, last Friday, the Supreme Court ruled to allow same-sex marriages in every State, which also opens up new tax and financial planning horizons for couples.
According to this Accounting Today article, same-sex couples will be able to file joint state tax returns in any state. However, it may take some time for state tax authorities to finalize their regulations and issue guidance.
In addition, same-sex couples will be able to make unlimited gifts to each other without worrying about gift tax implications. In the case of the death of a spouse, these couples can also leave property to each other without the survivor needing to pay estate taxes.
Below is also a video of President Obama discussing the importance of this ruling:
Finally, last week, President Obama also signed the Trade Priorities and Accountability Act of 2015 (HR 2146) and the Trade Preferences Extension Act of 2015 (HR 1295).
Both pieces of legislation offer several tax provisions, which include allowing certain federal employees to make penalty-free withdrawals from governmental plans (HR 2146), and certain educational tax benefits (HR 1295).
SC&H Group’s Tax Services team understands the unique economic and regulatory environments that can impact your financial performance – and your tax burden.
Contact the SC&H Group Tax Services team here for more insights into how you can take advantage of the tax benefits available in the wake of these two Supreme Court decisions, as well as the new trade legislation.