Thursday, December 18, 2014

Affordable Care Act Pop Quiz

Ran accross this quick little pop quiz by our software publisher.  It illustrates the complexity of the ACA.  Never attempt to prepare your tax return alone.


Helen is a college student who lives with her father during the year. She is covered by his health insurance as long as she is a full-time student, but when she graduates on May 23, she is dropped from his policy. For several months, she works part-time and temporary jobs that do not offer health insurance, and she does not obtain her own insurance. On October 5, she starts working full-time and obtains insurance through her new employer. Helen was uninsured from June through September.


Question: Is there a penalty, and who pays it?
 
Answer: Because she was uninsured from June through September, the penalty is imposed for at least those four months. However, if Helen's father claims her dependency exemption on his return for the year, the penalty is imposed on him, rather than on Helen.

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