Nov. 2016 Albany Training Class ACA Training Nov. 2016 Albany Training Class

Agenda – ACA Training ACA? What’s new Training focus and plans Training Resources Affordability tool and exercises

ACA Terminology Review ACA = Affordable Care Act MEC = Minimum Essential Coverage APTC = Advanced Premium Tax Credit FPL = Federal Poverty Level SRP = Shared Responsibility Payment LCBP = Lowest Cost Bronze Plan SLCSP = Second Lowest Cost Silver Plan

ACA Tax Forms Intake/Interview form page 3 Form 1095-A,B,C Health Insurance Marketplace Statements Form1040 Line 46 “Excess advance premium tax credit repayment” Line 61 “Health care: individual responsibility. Full year coverage box” Line 69 “Net premium tax credit” Form 8962 Premium Tax Credit Form 8965 Health Coverage Exemptions

What’s New for ACA TaxSlayer! TS “Interview style” easier to teach No affordability worksheets Use Bogart ToolBox affordability calculator Can’t see forms during input Needs more careful quality review

ACA Training Focus TaxSlayer Practice, practice, practice Basics, keep it simple Most Taxpayers have MEC & no 1095-A Interview and Intake Complex ACA require good interview Training for experts, where to “look it up” Only a few “very” complex ACA returns

New Vol ACA Training Plan Example Assign homework: read ACA section Pub4491/ watch video Use teaching materials that you like Do basic ACA exercises with class in TS E.g. One return, different scenarios Additional exercises (Pub 5157 or from healthreform website) Assign at least 2 of 4 required practice returns with ACA

ACA Sample Exercise in TaxSlayer NTTC Practice Problem 1 – Gail Archer 1099-INT & 2 W2’s Walk thru TaxSlayer screens for each scenario in class – View 1040 page 2, ACA forms, note changes in refund Simple MES example – has insurance all year No insurance (no exemptions), let TS calculate SRP Short coverage gap exemption (Form 8965) Coverage from marketplace 1095-A (Form 8962)

ACA Training for Returning Vols Homework: practice problems , reading ACA presentation and/or webinars Focus on areas your sites need Demonstrate affordability tool Do ACA practice problems/exercises Pub5157 ACA Taxpayer Scenarios Include ACA in required practice returns

ACA Training Resources www.healthreformbeyondthebasics.org Quick link on nytaxaide.org Select “For Tax Preparers” tab Webinars and replays Guides Presentations ACA exercises with answers Excellent Resources!

https://www. irs. gov/pub/irs-pdf/p4491. pdf. _ga=1. 78661908 https://www.irs.gov/pub/irs-pdf/p4491.pdf?_ga=1.78661908.1463925351.1478528605 https://www.irs.gov/pub/irs-pdf/p4491.pdf?_ga=1.78661908.1463925351.1478528605

IRS Health Reform Website

Health Reform Site Webinars 2015 Versions videos and presentations (ppts) Part 1: Basic Certification topics (50 pages) Part 2: Advanced Certification PTC Part 3: Comprehensive Examples & TW Updates Watch for 2016 versions on website Will include 2016 TaxSlayer screen shots

ACA Training Resources -NTTC ACA TRAINING SLIDES #36 Download from OneSupport website NTTC Workbook includes practice problems and 40 ACA exercises (for the experts) From AARP Volunteer website (orders tab)

NTTC ACA Training #36 Lots of stuff- hide pages to keep it simple OneSupport: taxtraining>materials/presentations Section 1 – 125 pages Basic ACA including quizes MEC, Exemptions(8965) , SRP (ACA worksheet) Section 2 – 60 pages 1095-A, PTC (8962), Out of Scope Lots of stuff- hide pages to keep it simple

NTTC Practice Returns with ACA Content Marketplace insurance 1095-A Archer*, Young* Shared Responsibility Payment Archer*, Clark, Reed Exemptions Danials, Thompson Excess or Additional PTC Wright, Young* Note: Young return is very complicated Recommend: Archer, Reed, Thompson, Wright (check affordability for Reed)

ACA Training Resources - IRS www.irs.gov Publications 4012: Vol Resource Guide ACA section 4491 Workbook ACA section 3 5157 New ACA Scenarios Link & Learn on line course with quizzes

IRS Publication 4491 –ACA Affordable Care Act – Section 3 (22 pages) ACA explanation, quizzes, answers, Glossary APPENDIX also in New Pub 5157 6 ACA exercises with answers, including TS forms Link: www.irs.gov/pub/irs- pdf/p4491.pdf?_ga=1.78661908.1463925351.14785286 05

ACA Presentation Example

ACA Affordability Calculator No affordability worksheets in TS now Jeff Bogart calculator available Quick link from nytaxaide.org Use to determines if affordability exemption applies Only needed when TP has no insurance

Shared Responsibility Payment (SRP) Pub 4012 ACA-13 Year Full-year payment is greater of: 2014 1% of household income above tax filing threshold (up to cap*) $95 per adult, $47.50 per child (up to cap of $285) 2015 2% of household income above tax filing threshold (up to cap*) $325 per adult, $162.50 per child (up to cap of $975) 2016 2.5% of household income above tax filing threshold (up to cap*) $695 per adult, $347.50 per child (up to cap of $2,085) > 2016 Values increased by a cost-of-living adjustment This is not a simple calculation and presented only to show the magnitude of the penalty Students do not need to know how to calculate the penalty * Capped at national average premium of a bronze level plan purchased through a Marketplace. For 2016, the cap is $2,676 per individual ($223 per month per individual), with a maximum of $13,380 for a family with five or more members ($1,115 per month for a family with five or more members).

Affordability Calculator Demo

Affordability Calculator

Affordability Calculator

Affordability Calculator

Affordability Calculator

Affordability Calculator

Affordability Examples 1. Single TP, no insurance, no EIO AGI = $22,000 2. Married TPs under 65, no insurance, no EIO AGI = $20,000 3. Married TPs under 65, no insurance TP wages = $30,000, EIO = $2500 self only Spouse wages = $32,000, EIO= $2600, self only *EIO=employer insurance offer

Affordability Examples 4. Married TPs TP, over 65, Medicare insurance Spouse under 65, no insurance, no EIO Spouse Wages = $24,000 TP SS = $24,000, taxable $2000 Dutchess LCBP=$580.01 for couple SLCSP=$372.38 for individual

Affordability Examples 5. Single TP, no insurance AGI =$40,000 Unemployed Jan-Jun New job July with EIO=$300/month Dutchess LCBP = $290.01 SLCSP = $372.38 for individual

TRAINING CONSIDERATIONS TY2016 LCBP & SLCSP data for affordability exemption will be available Dec-Jan on NYS health exchange website

Backup

ACA 2014 Data* 92% of TaxAide TPs had MEC 2.6% of returns included Form 8962 (PTC) < ½ of 1% of returns had Marketplace granted exemptions *data from NTTC presentations

ACA in Certification Test 6 of 35 test questions include ACA Topics: Responsibility for dependent coverage TP not legally in US 1095 A Repay Advanced Premium Tax Credit Coverage gap Shared responsibility payment