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.

Top Tax Deductions for Consultants

Consultants are likely to have deductible business expenses that can help you save big on your taxes. A checklist can help you account for every deduction you’re entitled to use. Here are the top tax deductions for consultants.

Read More

Brought to you by TurboTax.com

Seven Things You Didn't Know About Taxes

You know your federal taxes pay for government programs and services, like roads and national defense. And you may even know the difference between FICA and income tax. But did you know if you want to buy sparklers in West Virginia, you can expect to pay a special fee?

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 will affect the taxes of most taxpayers, but one key point to keep in mind is that for most people, the bill won't affect your taxes for 2017 (the one you file in 2018).

Read More

Brought to you by TurboTax.com

Video: How to Estimate the Value of Clothing for IRS Deductions

Learn how to estimate the value of clothing for IRS tax deductions as charitable donations. The value of clothing donations to charity are based on published lists of retail values or current thrift store prices. List your donation values on the Form 8283 with the help of TurboTax in this video on filing annual taxes.

Read More

Brought to you by TurboTax.com
Read Full Story