EA Exam 2025 Part 1 - Unit 14: Tax Credits EXAM WITH QUESTIONS AND CORRECT
VERIFIED ANSWERS GRADED A+ GUARANTEED 100% PASS
AFFORDABLE CARE ACT - (answer)Affordable Care Act is a comprehensive health care reform law first
enacted in March 2010. The Affordable Care Act (ACA) tax
provisions are administered by the IRS.
❏ Congress permanently eliminated the penalty under the
Affordable Care Act's individual mandate (i.e., the penalty for an
individual for failing to maintain minimum essential coverage, or
MEC).
❏ However, even though the individual healthcare penalty has been
reduced to $0, many Marketplace provisions are still active, and
taxpayers can still purchase health insurance through the
Marketplace and receive the Premium Tax Credit, which is
designed to cover a percentage of their health insurance costs.
Also, the two taxes that were instituted to help fund the ACA (the
Additional Medicare Tax and the Net Investment Income Tax),
were not repealed.
IMPORTANT ACA FORMS - (answer)❏ The IRS has created a group of forms to help handle some of the
requirements of the ACA. Taxpayers who are covered by health
insurance, will most likely receive one of the forms listed below.
Taxpayers must use the information from these statements when
preparing their taxes.
❏ Form 1095-A, Health Insurance Marketplace Statement: This form is for
individuals who enroll in Marketplace coverage.
, EA Exam 2025 Part 1 - Unit 14: Tax Credits EXAM WITH QUESTIONS AND CORRECT
VERIFIED ANSWERS GRADED A+ GUARANTEED 100% PASS
❏ Form 1095-B, Health Coverage: This is for employees or taxpayers
whose insurance comes from a source other than the Marketplace.
❏ Form 1095-C, Employer-Provided Health Insurance Offer and
Coverage: Individuals who work for applicable large employers will
typically get this form (employees will also get this form if they enroll
in self-insured coverage provided by an applicable large employer)
AFFORDABLE CARE ACT CONT. - (answer)Some taxpayers will receive multiple forms in the same year.
For
example, if a taxpayer purchased health insurance through the
Healthcare Marketplace at the beginning of the year, and then
started a new job in the middle of the year that offered health
coverage, the taxpayer may receive both Forms 1095-B and
1095-C.
PREMIUM TAX CREDIT - (answer)❏ There are two ways to get the Premium Tax Credit:
❏ If the taxpayer qualifies for advance payments of the Premium
Tax Credit, they can choose to have the amounts paid directly
to the insurance provider to help cover their monthly insurance
premiums. This is also called the "Advance Premium Tax Credit"
(APTC) because the taxpayers receive the credit in advance in
order to lower their monthly health insurance premiums.
❏ The taxpayer can choose to pay full price for their insurance
VERIFIED ANSWERS GRADED A+ GUARANTEED 100% PASS
AFFORDABLE CARE ACT - (answer)Affordable Care Act is a comprehensive health care reform law first
enacted in March 2010. The Affordable Care Act (ACA) tax
provisions are administered by the IRS.
❏ Congress permanently eliminated the penalty under the
Affordable Care Act's individual mandate (i.e., the penalty for an
individual for failing to maintain minimum essential coverage, or
MEC).
❏ However, even though the individual healthcare penalty has been
reduced to $0, many Marketplace provisions are still active, and
taxpayers can still purchase health insurance through the
Marketplace and receive the Premium Tax Credit, which is
designed to cover a percentage of their health insurance costs.
Also, the two taxes that were instituted to help fund the ACA (the
Additional Medicare Tax and the Net Investment Income Tax),
were not repealed.
IMPORTANT ACA FORMS - (answer)❏ The IRS has created a group of forms to help handle some of the
requirements of the ACA. Taxpayers who are covered by health
insurance, will most likely receive one of the forms listed below.
Taxpayers must use the information from these statements when
preparing their taxes.
❏ Form 1095-A, Health Insurance Marketplace Statement: This form is for
individuals who enroll in Marketplace coverage.
, EA Exam 2025 Part 1 - Unit 14: Tax Credits EXAM WITH QUESTIONS AND CORRECT
VERIFIED ANSWERS GRADED A+ GUARANTEED 100% PASS
❏ Form 1095-B, Health Coverage: This is for employees or taxpayers
whose insurance comes from a source other than the Marketplace.
❏ Form 1095-C, Employer-Provided Health Insurance Offer and
Coverage: Individuals who work for applicable large employers will
typically get this form (employees will also get this form if they enroll
in self-insured coverage provided by an applicable large employer)
AFFORDABLE CARE ACT CONT. - (answer)Some taxpayers will receive multiple forms in the same year.
For
example, if a taxpayer purchased health insurance through the
Healthcare Marketplace at the beginning of the year, and then
started a new job in the middle of the year that offered health
coverage, the taxpayer may receive both Forms 1095-B and
1095-C.
PREMIUM TAX CREDIT - (answer)❏ There are two ways to get the Premium Tax Credit:
❏ If the taxpayer qualifies for advance payments of the Premium
Tax Credit, they can choose to have the amounts paid directly
to the insurance provider to help cover their monthly insurance
premiums. This is also called the "Advance Premium Tax Credit"
(APTC) because the taxpayers receive the credit in advance in
order to lower their monthly health insurance premiums.
❏ The taxpayer can choose to pay full price for their insurance
