Health Coverage Tax Issues: ACA and Premium Tax Credit

Categories: Federal Tax, IRS CE
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About Course

This two-hour continuing education course provides tax professionals with a practical understanding of the federal tax provisions arising from the Affordable Care Act, with a primary focus on the Premium Tax Credit under IRC §36B. The course is designed for enrolled agents and other tax return preparers who prepare individual returns for clients with Marketplace health coverage, as well as those advising small business clients with employer coverage obligations.

Participants examine Premium Tax Credit eligibility, the household income and coverage requirements, and the benchmark plan calculation. The course provides detailed coverage of reconciling the credit on Form 8962, including Advance Premium Tax Credit reconciliation and repayment limitation caps. Students also study employer shared responsibility provisions and ACA information reporting under Forms 1094-C and 1095-C. The course concludes with special situations — mid-year marriage, divorce, and income changes — and common practitioner errors in ACA-related tax compliance.

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What Will You Learn?

  • Determine whether a taxpayer is an applicable taxpayer eligible for the Premium Tax Credit under IRC §36B
  • Calculate the Premium Tax Credit using the benchmark plan and applicable percentage
  • Reconcile Advance Premium Tax Credit payments against the allowed credit on Form 8962
  • Apply the repayment limitation caps for excess Advance Premium Tax Credit
  • Determine Applicable Large Employer status and apply the employer shared responsibility provisions
  • Apply the Premium Tax Credit allocation rules for mid-year marriage, divorce, and household changes

Course Content

Module 1 – Premium Tax Credit Eligibility — IRC §36B
This module covers Premium Tax Credit eligibility under IRC §36B — the applicable taxpayer requirement, household income thresholds, minimum essential coverage, and the benchmark plan calculation used to determine the credit amount. Participants also study the family glitch fix and monthly eligibility determination.

  • Premium Tax Credit Eligibility — IRC §36B

Module 2 – Calculating and Reconciling the Premium Tax Credit — Form 8962
This module addresses calculating and reconciling the Premium Tax Credit on Form 8962, including Advance Premium Tax Credit reconciliation, the annual versus monthly calculation method, repayment limitation caps, and the cliff effect that occurs once household income exceeds the applicable threshold.

Module 3 – Employer Shared Responsibility and ACA Reporting
This module examines employer shared responsibility provisions under IRC §4980H — determining Applicable Large Employer status, controlled group aggregation rules, Form 1094-C and 1095-C reporting requirements, and the affordability safe harbors available to employers.

Module 4 – Life Changes, Special Situations, and Practitioner Compliance
The final module covers special situations that affect Premium Tax Credit and employer reporting compliance — mid-year marriage and divorce allocation rules, household composition changes, shared policy allocation, and common practitioner errors in ACA-related tax compliance.

Final Assessment – Health Coverage Tax Issues: ACA and Premium Tax Credit
You have completed a comprehensive review of the federal tax provisions arising from the Affordable Care Act, covering Premium Tax Credit eligibility under IRC §36B, reconciliation on Form 8962, employer shared responsibility provisions, and special situations involving mid-year life changes. You are now prepared to demonstrate your understanding of the key concepts. The following final examination assesses your knowledge of the material covered in all four modules. A passing score of 70% is required to successfully complete the course.

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