Final Exam
Student:
Wang, Kent
SCORE:
92%
PASSED
A reconciliation occurs anytime an individual obtains Marketplace insurance.
XXTrue. (Wrong Answer)
False
Approximately ___ percent of H&R Block clients are expected to have a reconciliation requirement or a penalty/exemption situation.
10%
18%
XX25%
33%
Clients who require reconciliations will experience which of the following impacts at the tax desk:
Longer appointment time.
Increased tax preparation cost.
Increase in holds.
XXAll of the above
Your role with the ACA at the tax desk is to educate your clients on which of the following:
The individual mandate.
Availability of assistance with health care costs.
Availability of penalty exemptions.
XXAll of the above
If your client's household did not have qualifying health insurance for all 12 months of the year, you will need to:
Refer your client to the ACA hotline at the IRS, so that they can determine their next steps.
XXExplain that they may have to pay a tax penalty.
Explain that they will need to pay the IRS a $375 penalty.
None of the above
George and Lucinda enrolled in a Marketplace health plan in April of 2014, and received the Advance Tax Credit; their estimated household income at this time was $38,775. In May, In May, Lucy got a part-time job, raising their year-end household income to $46,530. Evaluate how this will impact their Marketplace health insurance
This will not impact their Marketplace insurance.
XXGeorge and Lucinda will likely have to repay some or all of the advance.
George and Lucinda will have to call a special ACA hotline that the IRS has set up to resolve this.
None of the above.
Documentation for proof of insurance other than from the Marketplace is currently self-attested, meaning that no physical proof is required from clients.
XXTrue.
False
An exemption means that a client must pay a penalty for not having qualified insurance.
True.
XX False
If a client answers "yes" to the following question, they will go through a more complex reconciliation process: "Did you share a Marketplace policy with another individual?"
XXTrue.
False
Approximately half of clients with Advance Tax Credits are unaware that their return will require reconciliation.
XXTrue.
False
Melissa is uninsured, but her husband Mike is covered through a private plan purchased outside the Marketplace; they file their returns jointly. Evaluate whether or not Melissa will face a penalty for being uninsured.
XXMelissa will face a penalty unless an exemption applies.
Melissa will not face a penalty.
Individuals who must reconcile may still file their return using the 1040EZ form.
True.
XXFalse
Americans who do not get qualified health insurance coverage may face a tax penalty unless they qualify for an exemption.
XXTrue.
False