Final Exam
Student:
Wang, Kent
SCORE:
100%
PASSED
Which statement best describes the purpose of Form 8962?
Claim an exemption from the ACA tax penalty.
XX Reconcile any advance premium tax credit paid with the actual premium tax credit and to claim the premium tax credit.
Report the individuals covered by a Marketplace policy and any advance premium tax paid on the taxpayer's behalf.
Calculate the ACA tax penalty.
Which of the following is NOT an exemption from the ACA tax penalty?
XXClergy member.
Member of a religious sect with objections to insurance, including social security and Medicare.
Health care sharing ministry member.
Member of a federally recognized Indian tribe.
Which statement best describes the term "tax household," for purposes of the ACA?
All the individuals listed on the tax return.
The taxpayer, their spouse if married, and their children if any.
XXThe taxpayer, their spouse if filing jointly, and their dependents whether claimed or not.
Everyone who lives in the taxpayer's household
Which of the following choices best describes qualified health insurance for purposes of the ACA?
XX Provides minimum essential coverage.
Pays 100% of the taxpayer's medical bills.
Provides maximum essential coverage.
Keeps the taxpayer and their family in good health
Which statement best describes the ACA individual mandate?
All taxpayers must have health insurance or be subject to a ACA tax penalty.
XXMost taxpayers are required to have qualified health insurance coverage for every month or be subject to a ACA tax penalty.
All taxpayers must have qualified health insurance coverage or be subject to a ACA tax penalty.
Most taxpayers are required to have health insurance coverage for every month or be subject to a ACA tax penalty.
What is the name of the tax information document that the Marketplace will issue to taxpayers who purchased health insurance through the Marketplace?
XX1095-A.
1099-A.
1095-H.
1099-H.
In 2013, the employee Medicare tax rate increased on earned income over $200,000 ($250,000 MFJ). What is that higher rate?
1.65%
1.90%
2.15%
XX2.35%
What is the tax consequence for a taxpayer who enrolled in insurance through the Marketplace?
The taxpayer will receive a Form 1099-A and complete Form 8965 to claim a tax deduction.
The taxpayer will receive a Form 1099-H and complete Form 8965 to reconcile any APTC paid.
XX The taxpayer will receive Form 1095-A and complete Form 8962 to reconcile any APTC paid or to claim the PTC.
The taxpayer is not in compliance with the ACA and will complete Form 8962 to calculate a ACA tax penalty.
Taxpayers may continue to include their adult children on their health insurance policy without additional tax consequences until a certain age. What is that age?
24
XX26
28
30
Read this scenario and then choose the answer that describes the tax household(s).
Lisa (28) is not married. She has two children, John (2), and Katelyn (6), who live with her. She has wages of $28,000. Lisa lives with her mother, Berta (55), in the house that Berta owns. Berta has wage income of $32,000. Lisa's brother, Leo (21), also lives in the house. Leo has wage income of $22,000.
Lisa, John, Katelyn, Berta, and Leo form one tax family.
Lisa, John, and Katelyn form one tax family, and Berta and Leo form a second tax family.
XXLisa, John, and Katelyn form one tax family. Berta forms her own tax family. Leo forms his own tax family.
Lisa and John form one tax family. Berta, Leo, and Katelyn form a second tax family.
Which statement best describes the purpose of Form 1095-A?
Reconcile any advance premium tax credit paid with the actual premium tax credit.
List the individuals eligible for an exemption from the ACA tax penalty.
List the individuals eligible for the advance premium tax credit.
XXReport the individuals covered by a Marketplace policy, their enrollment premiums, SLCSP, and any advance premium tax paid on the taxpayer's behalf.
Which statement best describes the purpose of Form 8965?
Claim the premium tax credit.
Allocate items on a shared policy.
XX Claim an exemption from the ACA tax penalty.
Reconcile any advance premium tax credit paid with the actual premium tax credit.
Which statement accurately describes how to calculate the ACA tax penalty for 2014?
XX The ACA tax penalty for 2014 is the greater of either 1% of household income less the taxpayer’s filing threshold or $95 per individual family member ($47.50 per child under age 18) without coverage up to $285.Capped overall by national average bronze premium.
The ACA tax penalty for 2014 is the greater of either 2% of household income less the taxpayer’s filing threshold or $195 per individual family member ($97.50 per child under age 18) without coverage up to $285.Capped overall by national average bronze premium.
The ACA tax penalty for 2014 is the lesser of either 1% of household income less the taxpayer’s filing threshold or $95 per individual family member ($47.50 per child under age 18) without coverage up to $285.Capped overall by national average bronze premium.
The ACA tax penalty for 2014 is the lesser of either 2% of household income less the taxpayer’s filing threshold or $195 per individual family member ($97.50 per child under age 18) without coverage up to $285.Capped overall by national average bronze premium.
What is the tax consequence for a taxpayer who had qualified health insurance coverage through a government program (such as Medicaid or CHIP) in every month of 2014?
The taxpayer is subject to a ACA tax penalty.
The taxpayer must complete a reconciliation.
The taxpayer can claim the refundable premium tax credit.
XXThe taxpayer is in compliance with the ACA and will check the "full coverage" box on their tax return.
Taxpayers may generally obtain qualified health insurance through one of four options. Which of the following is NOT one of those options?
Individual private market.
XX A life insurance policy.
Marketplace.
Government program
What is the name of the tax form that is used to claim an exemption from the ACA tax penalty for not having qualified health insurance coverage?
8926
8956
8962
XX 8965
Which of the following is NOT an exemption from the ACA tax penalty?
Income below the taxpayer's filing requirement.
XX Vision insurance.
Unaffordable coverage options.
Short gap in coverage
Below is a list of eligibility requirements for the premium tax credit. Please select the one that is NOT a requirement.
XX Must have coverage for every month of the year.
Do not file a tax return using the married filing separately filing status (unless exception for domestic violence or spousal abandonment applies).
Enroll in coverage through the Marketplace.
Not eligible for affordable coverage through an employer
What is the name of the tax form that is used to reconcile advance payment of the premium tax credit with the actual premium tax credit?
8926
8956
XX8962
8965