Final Exam
SCORE: 95%
PASSED
Question 15
When the monthly advance payment of the premium tax credit is allocated between the enrolling taxpayer and the claiming taxpayer, the calculation is referred to as the:
Your answer: Advance of the premium tax credit calculation.
FINAL EXAM
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. XXXThe taxpayer, their spouse if filing jointly, and their qualified dependents whether claimed or not. Everyone who lives in the taxpayer's household
Generally, a taxpayer may continue to include their adult children on their health insurance policy without additional tax consequences until the adult child reaches a certain age. What is that age? 24 XXX26 27 28
What is the name of the tax information document that the Marketplace will issue to taxpayers who purchased health insurance through the Marketplace? XXXForm 1095-A. Form 1095-B. Form 1095-C. Form 1095-
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 and provides 100% of her own support. Lisa's brother, Leo (21), also lives in the house. Leo has wage income of $22,000 and provides 100% of his own support. Lisa, John, Katelyn, Berta, and Leo form one tax household. Lisa, John, and Katelyn form one tax household, and Berta and Leo form a second tax household. XXXLisa, John, and Katelyn form one tax household. Berta forms her own tax household. Leo forms his own tax household. Lisa and John form one tax household. Berta, Leo, and Katelyn form a second tax household.
Which statement best describes the ACA individual mandate? All taxpayers must have some form of health insurance or be subject to a tax penalty. XXXMost taxpayers are required to have minimum essential health insurance coverage for every month of the tax year or be subject to a tax penalty. All taxpayers must have minimum essential health insurance coverage or be subject to a tax penalty. Most taxpayers are required to have some form of health insurance coverage for every month of the tax year or be subject to a tax penalty.
Which of the following choices best describes the type of insurance required by the ACA? XXXProvides minimum essential coverage. Pays 100% of the taxpayer's medical bills. Provides maximum essential coverage. Keeps the taxpayer and their family in good health
Taxpayers may generally obtain minimum essential health insurance through one of four options. Which of the following is NOT one of those options? Individual private market. XXXA life insurance policy. Marketplace. Government program
Which statement best describes the purpose of Form 8965? Claim the premium tax credit. Allocate items on a shared policy. XXXClaim a coverage exemption from the ACA tax penalty. Reconcile any advance premium tax credit paid with the actual premium tax credit.
Which of the following is NOT an exemption from the ACA tax penalty? XXXClergy 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
What is the tax consequence for a taxpayer who had minimum essential health coverage through a government program (such as Medicaid or CHIP) in every month of 2015? The taxpayer is subject to a tax penalty. The taxpayer must complete a reconciliation. The taxpayer can claim the refundable premium tax credit. XXXThe taxpayer is in compliance with the ACA and will check the "full coverage" box on their tax return.
Which statement accurately describes the ACA individual shared responsibility penalty for 2015?
XXXGreater of either 2% or $325
From the list of below, select the option that is not an eligibility requirement for the premium tax credit. XXXAnother taxpayer is eligible to claim the taxpayer applying for the premium tax credit as a dependent. Does not file a tax return using the married filing separately filing status (unless exception for domestic violence or spousal abandonment applies). Eligible to enroll in qualified health plan (QHP) through the Marketplace. Not eligible for affordable coverage through an employer
Which statement best describes the purpose of Form 8962? Claim an exemption from the ACA tax penalty. XXXReconcile any advance premium tax credit received with the actual premium tax credit or to claim the premium tax credit. Report the individuals covered by a Marketplace policy and any advance premium tax credit paid on the taxpayer's behalf. Calculate the ACA tax penalty
Which statement best describes the purpose of Form 1095-A? Reconcile any advance premium tax credit received with the actual premium tax credit or to claim the premium tax credit. Report the individuals covered under a qualified health insurance policy provided by a small employer, insurance company, or government agency. Report the individuals covered under a qualified health insurance policy provided by an applicable large employer. XXXReport the individuals covered under the Marketplace qualified health insurance policy, their enrollment premiums, second lowest cost silver plan (SLCSP), and any advance premium tax credit paid on the taxpayer's behalf.
When the monthly advance payment of the premium tax credit is allocated between the enrolling taxpayer and the claiming taxpayer, the calculation is referred to as the: XXXAdvance of the premium tax credit calculation. Premium tax credit calculation. Shared policy allocation. Shared Responsibility Payment
Generally, in 2015 an applicable large employer (ALE) is required under the employer shared responsibility provisions to do which of the following? Offer affordable minimum essential health insurance coverage to full-time employees, their spouses, and their dependents under an eligible employer sponsored plan. Offer affordable minimum essential health insurance coverage to full-time and part-time employees and their dependents under an eligible employer sponsored plan. XXXOffer affordable minimum essential health insurance coverage to full-time employees and their dependents under an eligible employer sponsored plan. Offer affordable minimum essential health insurance coverage to full-time employees and their dependents, including step children and foster children, under an eligible employer sponsored plan.
Which of the following forms is an applicable large employer required to file with the IRS to show it offered coverage to an employee? Form 1095-A. XXXForm 1095-C. Form 1099-MISC. Both A and B.
Which calculation method is most optimal for a taxpayer that qualifies for the self-employed health insurance deduction (SEHID) and the premium tax credit (PTC)? XXXThe iterative calculation method. The simplified calculation method. Both A and B. Neither A or B
When a taxpayer's projected household income is more than the actual income and the premium tax credit (PTC) is added to the taxpayer's refund, which scenario must occur in order for the taxpayer to itemize the health insurance premium deductions on their Schedule A? The taxpayer must increase the deductible health insurance premiums by the amount of refunded PTC. The taxpayer will not do anything. They can take the allowable deductions for the health premiums as they are. XXXThe taxpayer must reduce the deductible health insurance premiums by the amount of refunded PTC. The taxpayer cannot itemize any of the deductible health insurance premiums since they received a refund of the PTC.
Generally, in 2015 which of the following events will trigger the employer shared responsibility penalty? A part-time employee who works for an employer with 100 or more employees, receives qualified health insurance from the Marketplace, and receives the premium tax credit. XXXA full-time employee who works for an employer with 100 or more employees, receives qualified health insurance from the Marketplace, and receives the premium tax credit. A part-time employee who works for an employer with fewer than 50 employees, receives qualified health insurance from the Marketplace, and receives the premium tax credit. A full-time employee who works for an employer with fewer than 50 employees, receives qualified health insurance from the Marketplace, and receives the premium tax credit.