In New Jersey, Tax-Free Breast Implants

Tax free breastsStarting in July of 2013, New Jersey residents getting botox injections, breast implants, and other various nips and tucks will be able to get the procedures tax-free thanks to a bill signed today by Governor Chris Christie, New Jersey On-Line reports.

The bill will gradually phase out the "cosmetic medical procedures gross receipt tax," a state tax imposed in 2004 requiring clinics to collect taxes on their procedures.

The bill defines cosmetic surgery as "any medical procedure performed on an individual which is directed at improving the procedure subject's appearance and which does not meaningfully promote the proper function of the body or prevent or treat illness or disease."

According to Forbes, the 8-year-old tax brings in as much as $10.8 million in annual revenue.

But Christie and the bills other supporters have said enforcing the tax creates heavy burden on medical offices and those paying for the procedure.

"The phase-out provided by the bill will gradually alleviate the financial and administrative burdens associated with the tax," the bill states. "Since the gross receipts tax was imposed in 2004, the tax has increased overall costs for recipients of cosmetic medical procedures, and imposed an administrative burden on the medical offices billing the procedures and the State agencies charged with the administration and enforcement of the tax."

Controversy over taxes on cosmetic surgery erupted in 2009 when Senator Harry Reid proposed a 5 percent tax on elective procedures like Botox, which opponents quickly named the "Botax."

Facing opposition from the American Medical Association and the manufacturer of Botox, Democrats nixed the tax, which would have helped cover a tiny fraction of the cost of Obama's sweeping 10 year, $871 billion health care legislation, USA Today reported.

Instead, a 10 percent tax on indoor tanning services was added to the healthcare bill. That tax is expected to generate $2.7 billion over the next ten years, according to CNN Money.

How Bonuses Are Taxed

Working hard all year to help your company meet its annual goals deserves a reward, and you've definitely earned that bonus. But bonuses count toward your income for the year, so they're subject to income taxes. Read on to learn how much tax you can expect to pay on your bonus—and for tips on reducing your tax liability.

Read More

Brought to you by TurboTax.com

Tax Reform Changes That Impact Your 2018 Taxes

With all of the buzz about the new Tax Reform many taxpayers are questioning how this will affect their 2018 tax return. These provisions kicked in on January 1, 2018, which means that they will impact your 2018 tax return.

Read More

Brought to you by TurboTax.com

2018 Tax Reform Impact: What You Should Know

Congress has passed the largest piece of tax reform legislation in more than three decades. The bill went into place on January 1, 2018, which means that it will affect the taxes of most taxpayers for the 2018 tax year.

Read More

Brought to you by TurboTax.com

Video: What Are Income Taxes?

Income taxes are a percentage of money that you pay to the government based on every dollar of taxable income. Learn about income taxes with help from TurboTax in this video on tax tips.

Read More

Brought to you by TurboTax.com
Read Full Story