Question

The Affordable Care Act provides qualified insurance deductions are within: (all that apply)

A) box 12 of form W-2

B) health insurance program

C) post-tax deductions

D) cafeteria plan

Answer 1

Qualified insurance deductions under the ACA can be found in Box 12 of Form W-2 and may be available through a cafeteria plan. The ACA is funded by several taxes, including an increased Medicare tax and a tax on medical device manufacturers.

Step-by-step explanation:

The Affordable Care Act (ACA) provides for qualified insurance deductions and is supported by various funding mechanisms. Employers with more than 50 employees are subject to the employer mandate, which requires them to offer health insurance. This act is funded through additional taxes such as an increase in the Medicare tax by 0.9 percent for high income taxpayers and a 2.3% tax on manufacturers of certain medical devices. The qualified insurance deductions for individuals can typically be found in Box 12 of Form W-2, and some may be available through a cafeteria plan. Post-tax deductions are typically not related to the ACA deductions. The health insurance program mentioned might refer to ACA-compliant plans that can be purchased on the marketplaces, which offer income-based subsidies to make premiums more affordable.