Affordable Care Act Exercise Secton 10-Affordable Care Ast Exercise 1 All of the

Question

Affordable Care Act Exercise

Secton 10-Affordable Care Ast Exercise 1 All of the followng are considered mintmum essential coverage (MEC EXCEPT-J a) Coverage through a spouse's employer b) Health coverage through a r rtirn, hnalih insurance plan offered byfirmer c) CHP- mploger Medicald coverage only for ameegency treatments Sandy is covered under health insurance offered by her spousie's employer Does 2) e hae MEC? b) No 3) Buatriz is 20 yuars uld poing to school full-time and working to support barsellr [she provides more than hald of her own support). although she still ives with her parents Is Beatriz responsible for her health cmverage under NCA? a) Yes b) No 4) lim is 30, single with no dependests, and did not have health coverage for any moech during 2016 and does not qualify for a coverage exemption. His household incomse for 2016 was $40,000 and his filing threshold is $L0,350 What is his calculated penalty? a) s395 )$741 $2,000 5) lose parchased lesurance through Connect for Health Colorado, What form will he receive from the Marketplace to prepare his tax return? a) Form 8962 bl Form 1095A Form 8965 d) Form 1095-B 6) Connect for Health Colorado? a) Complete the return without including the form's information, as a preparer you do not have to see the form to complete the returs Complete the return by asking Jose to estimatesstat his insurance premiums and premiums tax credits were for the year c) Ask Jose to return when he has the correct forms Page 1 Tax Help Calorado 2017 Affordable Care Act Exercise

Explanation / Answer

1) As per IRS regulations, any coverage that is only for a specific disease or condition does not qualify as Minimum Essential Coverage. Hence, Option D is correct.

2) Since the plan offered by the employer of Sandy’s spouse is a general health insurance plan, it does qualify as MEC. Hence, option A is correct.

3) An individual who is earning is required to have a health care coverage under ACA with few exceptions. There are two criteria’s related to income of an individual that allows exemption from this coverage; (i) Individual has an income below the income tax return filing requirement & (ii) Individual can’t afford to buy a health insurance plan. Since there isn’t any specific information related to these points given, she seems to be responsible for her health insurance coverage. Hence, Option A is correct.

4) Penalty = (Household income – Filing threshold) x 2.5%
=> ($40,000 - $10,350) x 2.5% = $741.25
Hence, Option C is correct.

5) The form received from Marketplace is “Form 1095-A”. Hence Option B is correct.

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