Volunteer Income Tax Assistance (VITA) Certification Practice Test

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the VITA Certification Test with quizzes and multiple-choice questions, each featuring hints and explanations. Ace your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What percentage of a taxpayer's household income for 2015 qualifies as unaffordable coverage for exemption?

8.05%
9.55%
7.75%
6.50%

The correct answer is: 8.05%

In 2015, the Affordable Care Act (ACA) established specific guidelines regarding what is considered affordable health coverage for a taxpayer's household income. The threshold set for affordability was 9.56% of household income, which means that if a taxpayer had to spend more than this percentage of their income on the lowest-cost bronze plan available in their area, they could qualify for an exemption from the individual mandate penalty for not having health insurance. The choice of 8.05% is incorrect because it reflects the percentage for 2015 before the final calculation of the affordability threshold was rounded up. The correct percentage that was widely recognized at the time was actually set at 9.56%, which rounded down fits into the context of determining unaffordable coverage for that year, aligning more closely with the IRS guidelines regarding health coverage. It's important to highlight the understanding of how these percentages were determined, as they directly impacted taxpayer decisions regarding health insurance coverage in relation to their financial situation in 2015.