Understanding the Tax and Compliance Issues of Obamacare (Not Available)

Author: Arthur Joseph Werner

CPE Credit:  4 hours for CPAs
4 hours Federal Tax Law for CTEC
4 hours Federal Tax Related for EAs and OTRPs

The new tax issues and the compliance issues created by Obamacare can be confusing. This course teaches the tax professional everything that they need to know about Obamacare in the areas of tax compliance and planning.

Publication Date: February 2015

Designed For
Tax preparer's looking for an in-depth discussion on Obamacare

Topics Covered

  • A Timeline of the Affordable Care Act (2010 — 2018)
  • Understanding the issues regarding the 0.9% Medicare "High Income Tax"
  • Understanding the issues of the Medicare 3.8% "Net Investment Income Tax"
  • What is (and what isn't) "Net Investment Income"
  • Small Employer Tax Credit
  • Employer Penalties for failure to provide coverage
  • Calculation of "Full Time Equivalent Employees"
  • The Premium Tax Credit and the Advanced Premium Tax Credit
  • The Penalty for not Being Insured (The "Shared Responsibility Payment")
  • Forms 1095-A, 1095-B, and 1095-C
  • Compliance Issues — Form 8962
  • Shared Allocations
  • Penalty Exceptions and Compliance Issues — Form 8965
  • Case Studies

Learning Objectives

  • Recognize the tax and compliance issues of Obamacare
  • Identify the provisions of the Patient Protection and Affordable Care Act (PPACA) scheduled to be implemented in 2014, but moved to 2016
  • Recognize instances where you would be subject to the Medicare tax withholding
  • Identify a way to help reduce net investment income and potentially avoid the investment income Medicare tax
  • Recognize which factors apply if you were an employer with 21 FTE employees with an average salary of $51,000
  • Differentiate health benefit plans on the exchange requiring 30% out-of-pocket and represents the benchmark for a business receiving a tax credit
  • Identify the state with the highest poverty level incomes for preparing tax returns in 2014
  • Recognize examples when no shared allocation required for SLCSP coverage in the event of a divorce
  • Identify the cost for 2015 tax purposes that would most likely be paid for a full year 2014 Bronze coverage health insurance plan
  • Calculate the percentage of income computation for a total of seven months
  • Recognize the shared responsibility payment for household income
  • Identify the penalty exemptions discontinued after 2014
  • Describe the issues related to minimum essential coverage apply under the PPACA
  • Identify the tax rates that would apply under Patient Protection and Affordable Care Act (PPACA) also known as "Obamacare"
  • Recognize when a client would be subject to the additional Medicare tax on withholding if your client's self-employment income exceeded
  • Identify how to advise clients interested in investments
  • Describe how to advise a client to avoid the penalty according to the provisions of the PPACA
  • Recognize the number of FTE employees in a company
  • Identify how much a company would pay for an annual penalty for an employee who receives a premium tax credit
  • Recognize the out-of-pocket deductibles for families in the "shop" marketplace for small group plans
  • Identify the PPACA requirement to provide contraceptive coverage challenged by a 5-4 decision under the U.S. Supreme Court ruling
  • Identify your role as the accountant for a client using the Advanced Premium Tax Credit (APTC) subsidy when purchasing health insurance through an exchange
  • Recognize who is eligible for the Premium Tax Credit (PTC)
  • Calculate the percentage under PTC for families that would be poverty level based on 2013 figures of a families earned household income
  • Identify the form you would list family members covered by the marketplace and report the actual monthly premiums of SLCSP and APTC
  • Recognize the appropriate share allocation percentage for clients under various circumstances
  • Identify where to find information for payment of SCLSP
  • Describe circumstances that would apply to a shared policy
  • Recognize the flat dollar amount for shared responsibility penalty for dependents
  • Identify the flat rate computation penalty for uninsured clients
  • Describe who qualifies for penalty exemptions
  • Recognize when spouses would qualify for the premium tax credit under the health insurance Exchange



Instructional Method

NASBA Field of Study
Taxes (4 hours)

Program Prerequisites

Advance Preparation

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