Affordable Care Act Taxes and Penalties

Study Level:  Basic
Delivery Method:  Online self-study
Provider of Record: WebCE
Field of Study: Taxes
Tax Year: 2017
Prerequisites:  N/A

Course Description:

This course provides an overview of the more important taxes and penalties that are introduced by the Affordable Care Act (ACA), and their application to individuals, employers, trusts and estates. The course begins with an explanation of the penalties that individual taxpayers may face if they fail to obtain suitable health care coverage, and also discusses the premium tax credits that may be available to individuals. Next the two new income taxes that are introduced by the ACA are presented, with a discussion on their application to individuals, trusts and estates. Finally the obligations of employers are discussed along with the penalties they may face for failing to comply with the provisions of the ACA, and the tax credits that are available to employers that meet certain criteria. All of the discussions within the course are supported by worked examples that illustrate calculation of applicable taxes and penalties. 

Course topics include:
  • the individual mandate
  • additional hospital insurance tax
  • net investment income tax
  • the employer mandate

This course applies to tax years through 2018. Though the Trump administration tried to repeal ACA in 2017, most of it is still law as of January 2018. The Tax Cuts and Jobs Act, passed in December 2017 and signed by the President, did eliminate the penalty for the individual mandate but the mandate remains in force through 2018.

Learning Objectives:
Upon conclusion of this course, students will be able to: 
  • recognize the broad implications of the Affordable Care Act and how it affects taxpayers, both individuals and employers
  • calculate the penalties for individuals who do not comply with the individual mandate
  • identify taxpayers including estates and trusts who may be affected by the additional Medicare tax and net investment income tax and correctly calculate their liabilities
  • identify the obligations and penalties faced by employers for employee health coverage, withholding and reporting
  • identify the eligibility criteria for employers who wish to claim the small business health care tax credit

Revised: Jan 2018

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