Changes to Support due to the Affordable Care Act (“Obamacare”)

Some high income support cases will be affected by the implementation of the Affordable Care Act, irregardless of whether your divorce is in court or using mediation services. Prior to the Act becoming law Medicare was taxed at a rate of 1.45% on all earnings with no earning maximum (2.9% on self-employment). Now, under the Affordable Care Act, an additional 0.9% has been added on earned income over a certain level.

Filing Status Income Level
Single $200,000
Head of Household $200,000
Married filing jointly $250,000 (combined)
Married filing separately $125,000
Qualifying Widow(er) $200,000

Those paying support (both child and spousal) that have an income that exceeds the above levels will have less income available for support due to the increased Medicare taxes being removed from their pay. For those high income individuals whose income greatly exceeds these levels the reduction in support could be significant.

To speak with one of family divorce attorneys in PA, please contact Kris Smull at (800) 615-0115.

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