* Tax credits for employee health insurance available to small businesses and eligible tax-exempt employers.

* A 10 percent excise tax on indoor tanning services beginning July 1.

* Adoptions tax credit is now refundable; thresholds for qualifying expenses are increased; and credit is extended through 2011.

* Limits imposed on the special deduction for Blue Cross and Blue Shield organizations.

* Forgiveness of student loans for certain medical professionals in underserved areas is excluded from taxable income starting with the 2009 tax year.


* The deduction for employers for the value of benefits purchased for retirees with government subsidies under Medicare Part D is eliminated.

* The value of employees' health care benefits must be reported on W-2s.

* Money in flexible spending arrangements, health savings accounts and other health reimbursement arrangements can no longer be used for over-the-counter medicines unless prescribed by a doctor. The penalty for using HSA funds for nonqualified use rises to 20 percent.


* New reporting requirements for businesses making payments of more than $600 in a calendar year to corporations.


* Surtax of 0.9 percent is added to the 1.45 percent hospital insurance payroll taxes paid by high-income earners.

* Additional 3.8 percent tax on unearned income of high-income individuals.

* Threshold for claiming medical expense deductions rises from 7.5 percent of adjusted gross income to 10 percent. (For individuals 65 or older, it will remain at 7.5 percent until 2016.)

* Flexible spending arrangement contributions capped at $2,500, indexed for inflation beginning in 2014.


* Penalties begin for taxpayers who are required to have health care coverage. The penalty increases from $95 in 2014 to $695 in 2016.


* High-cost health insurance plans hit with 40 percent excise tax on amounts in excess of $10,200 (individuals) and $27,500 (families).

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