Study Guide - Healthcare Reform - Affordable Care Tax Act Provisions

The study guide is provided to guide you through the course material in a step by step format.

Course material is an online PDF document available immediately upon purchase.

Prerequisite: None

Course level: Basic

Advanced preparation: None

Teaching method: Online study and exam

Chapter 1 – Overview of PPACA Provisions

The objective of this chapter is to review how to:

  • Identify the rules applicable to –
    • grandfathered health plans,
    • the use of pre-existing condition exclusions, and
    • annual and lifetime benefit limits;
  • List the conditions that would permit an insurer to rescind health insurance coverage and the applicable notice requirements; and
  • Recognize the requirements imposed by healthcare reform legislation with respect to –
    • patient protection provisions,
    • the individual’s requirement to maintain minimum essential coverage, and
    • dependent coverage to young adults.

Chapter 2 – Personal Tax Changes

The objective of this chapter is to review how to:

  • Identify the changes made by the PPACA related to –
    • the treatment of costs for over-the-counter drugs and medical expense FSA contributions,
    • the tax penalty for nonqualified Archer MSA and HSA distributions,
    • medical expense deductions applicable to years after 2012,
    • the additional taxation on the earnings of high-income taxpayers,
    • the additional tax on high-income taxpayers’ net investment income, and
    • the additional tax on estate’s and non-grantor trust’s undistributed net
    • investment income;
  • Recognize the tax penalties generally applicable to individuals who fail to maintain minimum essential coverage; and
  • Calculate the amount of the premium assistance tax credit available to taxpayers whose household income is less than 400% of the federal poverty line.

Chapter 3 – Employer Tax Changes

The objective of this chapter is to review how to:

  • Identify the –
    • W-2 reporting requirements imposed on employers providing employer-sponsored health coverage, and
    • transition relief provided applicable to W-2 reporting;
  • Define “full-time employee” and “full-time equivalent employee” for purposes of employer tax credits and penalties under the PPACA;
  • Recognize the –
    • rules that apply to a small employer’s eligibility for a health insurance premium credit, and
    • nature of a “qualifying arrangement” under which an employer pays premiums for employee health insurance coverage;
  • Identify the types of coverage that meet the PPACA definition of health insurance coverage for purposes of the small employer health insurance premium credit;
  • Apply the various limitations that may reduce the amount of health insurance premium credit available to an otherwise eligible small employer;
  • Calculate the potential penalties applicable to large employers under the PPACA; and
  • Identify the –
    • transition relief available to applicable large employers, and
    • annual return and notification requirements imposed by the PPACA onapplicable large employers.

CPA Information

Site Search