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.

Answer 1

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.