Q. Wich statement accurately describes the ACA Individual Shared Responsability
ID: 2604534 • Letter: Q
Question
Q. Wich statement accurately describes the ACA Individual Shared Responsability penalty for 2016?
a) It is the greater of either: 2.5% of household income less the taxpayer´s filing threshold or $695 per individual family member ($347.50 per child under age 18) without coverage up to $2,085. Capped overall by the national average bronze premium.
b) It is the greater of either: 2% of household income less the taxpayer´s filing threshold or $325 per individual family member ($162.50 per child under age 18) without coverage up to $975. Capped overall by the national average bronze premium.
c) It is the lesser of either: 2.5% of household income less the taxpayer´s filing threshold or $695 per individual family member ($347.50 per child under age 18) without coverage up to $2,085. Capped overall by the national average bronze premium.
d) It is the lesser of either: 2% of household income less the taxpayer´s filing threshold or $325 per individual family member ($162.50 per child under age 18) without coverage up to $975. Capped overall by the national average bronze premium.
Explanation / Answer
ACA Individual Shared Responsability penalty for 2016?
Answer is (A) i.e. It is the greater of either: 2.5% of household income less the taxpayer´s filing threshold or $695 per individual family member ($347.50 per child under age 18) without coverage up to $2,085. Capped overall by the national average bronze premium.
Explanation: The annual payment amount is either a percentage of your household income in excess of the return filing threshold or a flat dollar amount, whichever is greater, as per the worksheets located in the instructions to Form 8965, Health Coverage Exemptions.
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