Question

Susan and Stan Collins live in Iowa, are married and have two children ages 6 and 10. In 2019, Susan's income is $41,214 and Stan's is $12,000 and both are self-employed. They also have $500 in interest income from tax exempt bonds. The Collins enrolled in health insurance for all of 2019 through their state exchange but did not elect to have the credit paid in advance. The 2019 Form 1095-A that the Collins received from the exchange lists the following information:

Annual premiums	$9,800
Annual premium for the designated silver plan in the state	$10,800
Federal Poverty Line for a family of four	$25,100

Compute the Collins' premium tax credit for 2019.

Click here to access the 2019 Applicable Figure Table.

Round any division to two decimal places before converting to a percent. If required, round your final answer to the nearest dollar.
$

Answer 1

Answer :

Susan's income	$41,214
Stan's income	$12,000
Interest income	$500
Modified AGI	$53,714
Federal proverty line	$25,100
Modofied AGI % on federal proverty line (53714 / 25100)	214%
Eligible credit %	7.05%
6.54% + (8.36% - 6.54%)*14%/50%	-
Eligible credit (53714*7.05%) (A)	$3,787
Annual premium for the designated silver plan in the state (B)	$10,800
Excess advance premium tax credit (B - A)	$7,013
Total advance payment of the premium tax credit	$9,200
Excess advance premium tax credit	$7,013
(Maximum cap is $1,600)	$2,187
Repayment amount	$1,600