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Advanced Course > Affordable Care Act

Affordable Care Act

Time Requirement: 30 minutes

Purpose

The lesson covers the tax provisions of the Affordable Care Act (ACA). You will learn how to determine if taxpayers are eligible to receive the premium tax credit (PTC).

For the 2019 tax year, the individual Shared Responsibility Payment (SRP) is reduced to zero. Taxpayers who do not have health insurance coverage during 2019 or later do not require an exemption to avoid the SRP.

Objectives

  • Determine who is eligible for the premium tax credit
  • Calculate the premium tax credit, if applicable
  • Report taxpayers’ premium tax credit on the tax return

Teaching the Lesson

Refer to the Lesson Plan for helpful instructor notes, visual aids, and Internet links. Point out that under the Affordable Care Act, only taxpayers who purchase qualified health care coverage through the Marketplace for themselves, their spouse, or their dependents are allowed a PTC. Eligible taxpayers may choose to get the benefit of advance credit payments, the amount of which is based on their estimated PTC, to reduce the cost of monthly premiums.

Refer students who may want to work independently to Publication 4491, Affordable Care Act lesson.

Key References

This lesson will refer to the following publications and forms:

  • Form 13614-C
  • Publication 4012, Tab H
  • Form 1095-A
  • Form 8962

All references to materials can be found by clicking the Job Aids and Media buttons. There are also links to helpful tools that can be found on the irs.gov public portal. For this lesson, the student can link to the following tax topic sites for additional help:

TaxSlayer® Demos and Tutorials

It is recommended to go to the Practice Lab and access the latest TaxSlayer tutorial for this lesson. The TaxSlayer tutorials can be found by going to the Practice Lab and clicking on the link for TaxSlayer IRS training.

Publication 4012, Tab H, includes instructions and tips on the Affordable Care Act.