1. TAX-AIDE Patient Protection and Affordable Care Act (PPACA) Better known as ACA The Basics

2. TAX-AIDE Shared Responsibility Individuals - Obtain coverage, or - Claim an exemption from the coverage requirement, or - Make a shared responsibility payment Employers - Large employers: Provide coverage, and - Small employers: Incentives to provide coverage Government - Expand Medicaid (at state option), - Make available premium tax credits, - Build Marketplace(s) 2

3. TAX-AIDE Three Main Elements 1. Everyone must have Healthcare Insurance Exemptions are available (Form 8965) 2. Financial Assistance May be available (Form 8962) 3. No Insurance? May be penalized NTTC Training 2014 3

4. TAX-AIDE 1. Examples of Acceptable Insurance ● Employer Provided ● Medicare ● Medicaid ● Tricare ● Purchased via Health Insurance Marketplace NTTC Training 2014 4 See page ACA-4 In 4012

5. TAX-AIDE Exemptions Available ● Income below income tax filing threshold ● Unaffordable (Premium >8.0% household income) ● Short coverage gap (No coverage <3 months) ● Not lawfully present in US NTTC Training 2014 5 See page ACA-5 In 4012

6. TAX-AIDE Exemptions Available (cont.) ● Member of a: Health Care Sharing Ministry Federal recognized Indian Tribe Recognized religious sect conscientiously opposed to accepting insurance benefits ● Incarcerated NTTC Training 2014 6

7. TAX-AIDE 2. Financial Assistance May be Available ● Premium Tax Credit (PTC) – Refundable Credit ● Advance available to help pay premiums Exchange can estimate PTC at time of purchase ● PTC can be paid in advance to insurance company OR applied as refundable credit on 2014 federal tax return ● Must be reconciled on 2014 tax return NTTC Training 2014 7

8. TAX-AIDE Premium Tax Credit Eligibility ● Must buy Health Insurance through Marketplace ● Employer coverage NOT eligible ● Household income within limits (100% – 400% of government federal poverty guidelines) ● Not eligible for coverage in Government Program, e.g. Medicare or Medicaid ● Cannot file MFS (some exceptions) ● Cannot be claimed as a dependent NTTC Training 2014 8

9. TAX-AIDE 3. No Insurance? May be penalized ● If taxpayer or any dependent doesn’t have Minimum Essential Coverage (MEC) and doesn’t have an exemption: Must make a Shared Responsibility Payment (SRP) with tax return ● Effective January 1, 2014 NTTC Training 2014 9

10. TAX-AIDE Changes for 1040 ● Three lines on page 2 Line 46 – repay excess premium subsidy Line 61 – pay penalty or claim coverage all year Line 69 – claim tax credit ORTC Training 2014 10

11. NTTC Training 2014 11

12. TAX-AIDE ACA Documentation and Forms ● 2014 Pub 4491 – ACA Chapter added. This chapter is also published as Pub 5157 VITA/TCE Affordable Care Act ● 2014 Pub 4012 – has an ACA Tab added ● Form 1095-A and Instructions – Health Insurance Marketplace Statement – Issued by Marketplace 1/31/15 ● Form 8962 and Instructions – Premium Tax Credit ● Form 8965 and Instructions – Healthcare Coverage Exemptions ● Much more later NTTC Training 2014 12

13. TAX-AIDE Documentation and Forms Three Main Elements 1. Everyone must have Healthcare Insurance Exemptions are available (Form 8965) 2. Financial Assistance? May be available (Form 8962) 3. No Insurance? May be penalized ● QUESTIONS ? NTTC Training 2014 13

14. TAX-AIDE Optional Exercise ● Open any 2014 return you have worked on. ● Taxpayer(s) and all dependents had MEC all year ● Check box on line 61 ● Notice Wkt 8 is no longer red in tree. ● Done with ACA for that return ORTC Training 2014 14