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

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

3. 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

4. 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

5. 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

6. 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

7. 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

8. ACA Sample Exercise in TaxSlayer
NTTC Practice Problem 1 – Gail Archer 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)

9. 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

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

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

12. IRS Health Reform Website

13. 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

14. 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)

15. 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

16. 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)

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

18. 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: pdf/p4491.pdf?_ga=

19. ACA Presentation Example

20. 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

21. 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, $ per child
(up to cap of $975)
2016
2.5% of household income above tax filing threshold (up to cap*)
$695 per adult, $ 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).

23. Affordability Calculator Demo

24. Affordability Calculator

25. Affordability Calculator

26. Affordability Calculator

27. Affordability Calculator

28. Affordability Calculator

29. 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

30. 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 $2000
Dutchess LCBP=$ for couple
SLCSP=$ for individual

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

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

33. Backup

34. 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

35. 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