Marketplace, Obama Care, Affordable Care Act Health Insurance
In this training I explain what Marketplace Health Insurance is, what subsidy is, why the 1095A needs to be entered on the tax-return, the effects both income and policy cost can have on a return, and things to watch for.
PDF of Presentation Here For PowerPoint file click here
Click image for Recording
F drive.google.com/file/d/1KTNjWoQi5YlCbf0zjHAYCRxAT8NA8MHy/view?usp=sharing109Resources used in presentation:
Paul Bunyan-- How Income and policy costs affect a return
Meet Paul Bunyan Information My notes
The Kemps-- a practice Scenario with Lump Sum Social Security & Marketplace
Kemp's Notes and Tax documents Completed 1040
Note:This is a great scenario for playing around--what if they choose to file MFS? Will that help? What if they make maximum contributions to IRA? Will that help? Play around and see.
healthcare.gov/tax-tool For calculating SLCSP for Column B if you have multiple 1095-A's with overlapping coverage
Understanding & Explaining what is Happening to return
Keeping it Simple: For Scenario 1-4
· Client name is Betty White –Single with NO dependents SSN: 201-00-0000 DOB: 09/05/1999
· Address: 123 Imaginary Lane; Lehigh Acres, FL 33936 Phone: 239-555-5555
· Only income is from one job—has 1 W2 with her, Received all stimulus money entitled to
· No expenses to itemize, no other income at all, no student loan interest payments, etc.
· Has Marketplace Health insurance and has brought in her 1095A (we will use the same 1095A for the first few scenarios)
Scenarios 1-4: (Click Here for PDFs of backup) so you can try entering them
Federal Poverty Level=FPL
1 -- Income under 100% of FPL
2 -- Income over 100% of FPL (credit)
3 -- Income over 100% of FPL (owes)
4 -- Income over 400% of FPL
Enter these in Taxslayer - see handout below to learn how to explain what happens to client in each scenario--click image to open document (4 pages)
ACA Affordable Care Act Important Information!!!
Please review this excellent handout to make sure you are not accidentally forcing a repayment of subsidy--it's all in how you answer these 2 questions. (Created by: A project of the Center on Budget and Policy Priorities)
For these 2 questions, Remember New York (NY)
and you can easily avoid an accidental forced repayment.
You can contact me at firstname.lastname@example.org
Please note: I, Mary Meador, AM NOT a certified accountant or tax law expert. I volunteer with VITA providing free tax preparation for individuals and families whose income is less than $66,000 a year. We deal with simple returns at our sites. I cannot guarantee the accuracy of all the information on this site as tax laws change and I may not have a clear understanding of complicated issues. I am trying to provide basic tax preparation information for our volunteers to get started--remember Publication 4012 is your go-to resource for questions, as well as irs.gov and Publication 17. I hope you find this information useful and easy to understand. Thanks for being a VITA/TCE volunteer!