ACA Flashcards
What are two broad categories of exemptions?
1) ACA tax penalty exemptions-tax returns
2) ACA tax penalty exemptions-Marketplace
What is an exemption?
A client ,who is not insured, cannot be penalized within reasonable circumstances.
What are exemptions for tax returns?
1) not lawfully present
2) short term coverage gaps
3) income below filing requirement
4) coverage effective by May 1st
5) unaffordable coverage options
6) member of a federally recognized indian tribe
7) indian health service eligibility
8) member of healthcare sharing ministry
9) incarceration
10) Medicaid ineligibility- non-expanded states
What are tax penalty exemptions in marketplace?
1) member of religious sect with insurance objections
2) Hardship exemptions( see hardships)
What are 14 hardships that apply to the tax penalty exemption-marketplace?
1) Homelessness
2) Eviction/foreclosure
3) Utility shut-off
4) Domestic violence victims
5) Death of a close family member
6) Disaster victims
7) Bankruptcy
8) Medical expenses-unpaid
9) Ill, disabled, or aging family members
10) Dependent children without insurance
11) Marketplace eligibility appeals decision
12) Cancellation of Health Plan
13) AmeriCorps( State and National)/ VISTA/ National Civilian Community Corps Members
14) Other Hardships….
A taxpayer and family who has insurance from taxpayer’s employer is required to file 1095 A and 8962 ( PTC) forms?
Taxpayer is not required to file 8962 nor have 1095 A.
Client and his family has been insured by choosing marketplace insurance. The family’s insurance is covered though-out 2014. Does the taxpayer file for 8962 form( PTC)? What form is needed?
yes. 1095 A.
Taxpayer and family’s health insurance did not cover 12 months of 2014. What is consequence? What needs to be filed?
Complete 8965 form to avoid penalty.
educate client on types of exemptions through ACA marketplace exemptions.
A taxpayer and his family are insured by taxpayer’s employer for 2014. But, a dependent of the household has been covered by marketplace insurance instead of taxpayer’s insurance. Is a 1095 A form needed? How is it filed?
yes. 8962 form to completed “ allocation section of 8962”.
What is ACA tax penalty for single adults in 2014?
$95 per adult
What is ACA tax penalty for family in 2014?
1% of family income.
What is the ACA tax penalty and percentage increase (from 2014) in 2015 for adults?
$325. 70%.
What is ACA tax penalty for families in 2015?
2% of family income.
What is reconciliation process?
1 step) estimate taxpayer’s income
2 step) Tax Credit eligibility
3 step) Reconciliation
