Questions & Answers for "TaxAct Preparer's Editions and the ACA for 2014 Returns" Webinar



A person is covered by a Company health insurance then goes on COBRA. How would this be handled? COBRA qualifies as minimum essential coverage. If there was no coverage gap during the switch, they can indicate full-year qualified health insurance.
Adult child covered under parents health insurance. Which box clicked for coverage? Adult child would need to know which which months in 2014 they had coverage.
As tax preparers do we get any incentive for the sales of the insurance? There is no incentive offered from GetInsured, but you could consider charging your clients a fee for the assistance.
Define Marketplace Under the new ACA rules, the marketplace is your State's price comparison website for subsidized health insurance. This is where you client can go to shop for insurance and receive an advanced premium tax credit.
Do you have a list of exemptions to the requirements of this Act (religious exemptions, etc.), along with explanations on how to qualify for each exemption? See IRS Form 8965 Instructions and exemption information
From my understanding the client will not get the credit if they did not get the insurance throught the Marketplace. Is this correct? Yes.
Health Coverage Exemption needs to be requested by the applicant directly to the MarketPlace? Some exemptions require an application through the Marketplace. See ( for more information
How will exemptions for the penalty work if a person does not have coverage? There are two types of health coverage exemptions. 1) Marketplace-granted exemptions and 2) exemptions that can be claimed on a tax return (some exemptions can obtained either way).See IRS Form 8965 Instructions.
How will it be handled if there is dual insurance. Such as: One spouse (younger who is not a parents dependent) is covered under parents insurance. Spouse (also younger, not a dependent of parents) was not covered under parents insurance and purchased insurance through Marketplace? Tax credits will be determined based on total household income. To qualify for credits, they will likely have to file jointly.
I have a client that has medicare part A only. She cannot, due to previous circumstances, get part B. Is she considered covered? If you have Medicare Part A (Hospital Insurance), you're considered covered under the health care law and don't need a Marketplace plan.
If a client did have insurance do you have to ask for proof and enter the information? No. If your client says they have health insurance, you are allowed to trust that choice. No due diligence requirements are needed for this purpose.
If I am not doing the enterprise edition this year, am I able to get tax act downloaded to 2 different laptop computers for client use? You may download TaxAct for use on a second computer with the same preparer office. This would be for the use of another preparer.
If only one member of the household does not have qualifying insurance (but say the other 3 members do), is the penalty still 1% of the entire household's income? Yes or $95, whichever is greater.
If taxpayer didn't go thru the Exchange, but does have health insurance, will he receive any form from his insurance company? If not, any suggestions for documentation requirements? They will receive a 1095-B or 1095-C starting in 2016. For this year, it is highly unlikely. No due diligence requirements for this, so no proof is needed. Just need to get an answer from your client.
If you only have a 3-month gap do you still have to do the exemption worksheet? Yes, but this can be claimed on your federal tax return using Form 8965.
Is medicaid concidered insurance? Yes, Medicaid coverage is considered minimum essential coverage
Are there costs for use of get insured or websites? There is no cost to use the Get Insured or websites. There are products and services available and any costs to purchase those would be communicated within each offer.
Is there a different method to enter healtchare coverage if a client has partial year of private insurance and part year of insurance? No, both private insurance and marketplace insurance are entered the same on the health insurance coverage worksheets
What if they were on Public insurance like Medicaid or share of cost Medicaid then join the Obama care market place? To receive tax credits they'll need to file federal income taxes for the year they received the credits (to facilitate reconciliation of their tax credits). If their income increased from the Medicaid eligibility range in their state to the tax credit eligibility range (or even beyond) they very well could move from Medicaid to an Obamacare plan and may be eligible for tax credits.
My clients mostly want to know how to avoid penalty if they have zero insurance? Have the exemptions been finalized yet? The exemptions for 2014 have been finalized and the most common ones are listed at In addition to the most common exemptions are the hardship exemptions which can be found at
My sister lost her job 2 years ago and does not receive any income. Are there subsidies to pay for her health care? There are exceptions but generally your income must be between 100%-400% of the federal poverty line in order to qualify for the subsidies (also known as the premium tax credit). For a single individual living in the lower 48 states, the 2013 federal poverty line is $11,490 (2013 FPL is used to calculate 2014 PTC)
Parents lives with their son for 7 months and qualify for claim as dependent under form 1040. But parents are not Us citizens or green card holders. They are legal to stay for 7 months in US as visitors. They didn't buy any insurance in 2014. Will son need to pay penalty for uninsured dependent? Nonresident aliens who file Form 1040NR are not required to have health insurance. Therefore, there is no penalty for anyone in their tax household being uninsured.
Question to GetInsured- taxpayers are eligible for a tax credit only if they purchase through marketplace - when going through you how do they qualify for the tax credit? Do you sign them up through marketplace? GetInsured helps customers enroll through their marketplace (either or a state based exchange depending on the state in which they reside).
So the taxpayer has to request the exemption? There are two types of health coverage exemptions. 1) Marketplace-granted exemptions and 2) exemptions that can be claimed on a tax return (some exemptions can obtained either way). See IRS Form 8965 Instructions.
Thanks this is excellent. Do you mind sharing the slides? The key dates are important to me. The webinar will be available to view through YouTube from a link on our website at
What is the definition of Household Income? The Form 8962 and the premium tax credit, household income is the modified adjusted gross income (MAGI) of anyone reported on your tax return. For purposes of the premium tax credit, MAGI is the AGI (form 1040, line 37) on your tax return plus foreign earned income, tax-exempt interest and social security benefits not included in income.
What is the max income and still get tax credits? Generally your income must be between 100%-400% of the federal poverty line in order to qualify for the premium tax credit. An individual's federal poverty line depends on their family size and location. Also keep in mind 2013 FPL figures are used to calulate 2014 premium tax credits. The FPL for a family of four living in the lower 48 states is $23,550 so their income could be as high as $94,200 and still qualify for credits.
What is the repayment limitation table? Please explain. If a taxpayer received too much advance premium tax credit, there are limits to the repayment amount.
What is the website for Get Insured?
When will the updated organizers be available? Once the final product is released in early January.
Where is the form for prep organization regarding health insurance you mentions? A new prep organizer will be released in early January. It can be found in the Preparer link, then select Print Organizers.
Will we be able to get a copy of this slideshow? The webinar will be available to view through YouTube from a link on our website at
Would you have this in PDF too? If yes, would it be in TaxAct? Only the webinar recording will be available at"
Where will I find the recorded version? The webinar will be available to view through YouTube from a link on our website at
Does this webinar qualify for CPE for CPA's? Unfortunately, we are not currently authorized to offer CPE credit for our webinars
Isn't the 1095-A optional for the inurance company to send out? The marketplace sends the 1095-A and it is required. Insurance companies file either Form 1095-B or Form 1095-C and it is optional this year.
What's the web address for that last screen?
How does one get an exemption for the penalty for not having insurance. File Form 8965. Not all exemptions can be claimed on this form so you may have to file an exemption claim through the Federal marketplace (
In the training that we have had through organizations such as NATP, they are stating it is a violation of our Graham Leach Privacy Policy to use taxpayer info to assist them in actually applying or assisting a client in healthcare coverage. Therefore, this is somewhat misleading. We can tell them about Get Insured, however, we can not assist them in applying, which is my understanding. Our understanding is that you should not lead them to one specific health care provider or tell them the best plan. Simply showing the different options and letting the taxpayer make their own decision from there is okay.
Due Diligence? IRS has stated they are not requiring 'Due Diligence' for purposes of the individual shared responsibility payment.
How do we get copies of this webinar. Are they available on Tax Act web site page? The webinar will be available to view through YouTube from a link on our website at
Should we have the client call the insurer for the 1095-A if they never received this? We would recommend having your client access the state's marketplace using their username and password and it should be viewable/printable as a PDF through their online account.
If, by accident, the health insurance info is not completed on TaxAct, will TaxAct give prompt to complete & disallow e-filing? Yes, there will be alerts for incomplete information as well as alerts explaining the penalty if a taxpayer did not have coverage and how to go about claiming possible exemptions.
On your GetInsured, it says the penalty is a large amount. Is this based on income or size of family? We were told it was $95 per per person for 2014 The penalty is the greater of $95 per person or 1% of household income for 2014. GetInsured had the numbers for 2015 listed.