This course serves to reinforce knowledge
on the health care law and provide a forum for developing tax planning
strategies and addressing client practice issues.
At the end of this session, participants
will be able to:
• Explain the current and future provisions of the health care law for individuals.
• Explain the tax implications of the health care law for individuals.
• Apply the tax implications of the health care law to a variety of client situations.
• Explain the tax credit for small businesses which provide health insurance coverage to their employees.
• Explain the requirement for businesses with 50 or more full-time equivalent employees to offer health insurance coverage to their full-time employees beginning in 2015 and the penalty for not meeting the requirement.
• Explain the Medical Loss Ratio.
Final Exam• Explain the current and future provisions of the health care law for individuals.
• Explain the tax implications of the health care law for individuals.
• Apply the tax implications of the health care law to a variety of client situations.
• Explain the tax credit for small businesses which provide health insurance coverage to their employees.
• Explain the requirement for businesses with 50 or more full-time equivalent employees to offer health insurance coverage to their full-time employees beginning in 2015 and the penalty for not meeting the requirement.
• Explain the Medical Loss Ratio.
SCORE:
100%
PASSED
1,
Beginning in January 2014, most U.S. citizens and lawful residents are required to be covered by minimum essential coverage. Which of the following is NOT a way to obtain that coverage?
Employer-provided.
Government-sponsored.
Private insurance through the Marketplace.
X Automobile policy with medical benefits.
2,
Beginning in 2013, contributions to Flexible Spending Accounts (FSAs) have a lower limit. What is that limit?
X $2,500
$3,000
$4,500
$5,000
3,
In 2013, the Medicare tax rate increased on earned income over $200,000 ($250,000 MFJ). What is that higher rate?
1.65%
1.90%
2.15%
X 2.35%
4,
An eligible taxpayer may receive the premium tax credit in two ways. First, as an advance paid directly to the insurance company for insurance purchased through the Marketplace. What is the second way?
As a direct monthly payment from the Marketplace to the taxpayer.
As a reimbursement after the taxpayer submits proof of insurance to the Marketplace.
X As a refundable credit on the taxpayer's tax return.
As a an adjustment to gross income on the taxpayer's tax return.
5,
Taxpayers who do not have minimum essential coverage in 2014 may be subject to a tax penalty. The penalty is assessed for each month a taxpayer does not have qualifying coverage, but there is an exception for the first short period of non-coverage for the year. How long is the allowble period of non-coverage?
One month.
X Less than three months.
Four months.
Less than six months.
6,
Which of the following best describes an employer-sponsored plan that provides minimum value?
X The plan pays 60% of covered expenses.
The plan premiums are no more than 8% of the employee's net income.
The deductible is no more than $7,500 for family coverage.
The plan pays 50% of the cost of doctor visits and 80% of the cost of hospital stays.
7,
There is a penalty tax on HSA distributions that are not used to pay for qualified medical expenses. What is that penalty tax rate?
10%
15%
X 20%
25%
8,
What is the name of the tax information document that the Marketplace will issue to taxpayers who purchased health insurance through the Marketplace?
X 1095-A.
1099-A.
1095-H.
1099-H.
9,
Eligibility for the premium tax credit is determined by the taxpayer's household income and family size. Which of the following best describes family size for purposes of the premium tax credit?
All individuals residing at the taxpayer's address for more than six months of the year.
Everyone listed on the taxpayer's income tax return.
All individuals in a qualifying relationship for whom the taxpayer claims an exemption.
X Everyone for whom the taxpayer is allowed to claim an exemption, whether they do or not.
10,
The requirement that businesses with 50 or more full-time equivalent (FTE) employees provide an option for health insurance coverage to their full-time employees has been postponed. What is the current effective date of this requirement?
January 1, 2014.
April 1, 2014.
October 1, 2014.
X January 1, 2015.