Question

1. All of the following are requirements for premium tax credit eligibility EXCEPT: For at least one month of the year, __________ .

A. Someone in the taxpayer's family was enrolled in a qualified health plan through the Marketplace.

B. Someone in the taxpayer's family who was enrolled in a Marketplace plan was not eligible for minimum essential coverage every day of the month.

C. Someone in the taxpayer's family who was enrolled in a Marketplace plan was eligible for minimum essential coverage every day of the month.

D. The portion of the enrollment premiums for the month for which the taxpayer is responsible was paid by the due date of their tax return (not including extensions).

2. All of the following are profit factors the IRS uses to determine the profit motive of an activity EXCEPT when the taxpayer __________.

A. Experiences personal pleasure or recreation from the business.

B. Has had losses for the activity in four of the last five years.

C. Is dependent on income from the activity.

D. Spends a significant amount of time and effort on the activity.

Answer 1

Q1 the answer is C. Someone in the taxpayer's family who was enrolled in a Marketplace plan was eligible for minimum essential coverage every day of the month.

Q2 the answer is B. Has had losses for the activity in four of the last five years.

For being profit motive, the taxpayer should have profit in 3 years out of 5 years