Question

Susan is a single taxpayer, 26 years of age, with AGI of $28,000 and no tax exempt income. She did not have minimum essential coverage for 8 months in 2017. Compute Susan's individual shared responsibility payment for 2017. For 2017, the flat annual dollar amount is $695 per adult and $347.50 per child, limited to an annual maximum of $2,085 per household.

Answer 1

affordable care act requires that you and each member of your family should have qualifying health care policy. In case insuarance is not taken then individual shared responsibilty payment has to be made along with the federal tax return.

since susan does not have minimum essential coverage for 8 months she had to pay individual shared responsilibity payment alonh with the federal tax payment she made.

individual shared responsibility is greater of the below.

2.5% of income above exempted limit

or

family flat dollar amount that is $695 per adult.

but this shold not exceed the limit of $2085 per household. since her AGI is $28000 and exempted amount is $9326

than(28000-9326)*2.5/100=466.85 annualy

but she only missed the coverage for 8 months hence proportionate amount is 312.

since the payment is gretar of the ABOVE mentioned limits she has to pay 695 per adult flat rate .