Marco and Tracy Brigante live in California, are married filing jointly, under age 65, and have three
Question:
Marco and Tracy Brigante live in California, are married filing jointly, under age 65, and have three children ages 14, 16, and 26; however, the oldest child is not claimed as a dependent and does not live at home. Tracy’s adjusted gross income is $44,040 and Marco’s is $22,000 and both are self-employed. They also have $2,000 in interest income from tax-exempt bonds. The Brigantes are enrolled in health insurance for all of 2017 through their state exchange and elected to have the credit paid in advance.
Using the Brigante’s 2017 Form 1095-A (click here to access the completed Form 1095-A), complete the Form 8962.
Round your final answers to the nearest dollar. For line 5, round to two decimal place before converting to a percent. Enter as a percent and not a decimal. For example: 1.35 would be entered as 135. For line 7 on Form 8962, enter the amount as shown on the 2017 Applicable Figure Table.
Table for Federal Poverty Line
Persons in Family/Household | 2016 FPL for 48 States and DC | |
1 | $11,880 | |
2 | 16,020 | |
3 | 20,160 | |
4 | 24,300 | |
5 | 28,440 | |
6 | 32,580 | |
7 | 36,730 | |
8 | 40,890 | |
Each additional person | +$ 4,160 | |
The household income is then expressed as a percentage of the FPL. |
Table for Repayment of the Credit Amount
Single | Taxpayers Other Than Single | |
Less than 200% | $300 | $600 |
At least 200% but less than 300% | 750 | 1,500 |
At least 300% but less than 400% | 1,275 | 2,550 |
At least 400% | No limit | No limit |
Click here to access the 2017 Applicable Figure Table to use for this problem.
Complete the Form 8962 to determine (1) the actual premium tax credit, (2) the excess advance payment, and (3) the repayment amount required. Enter all amounts as positive numbers.
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Taxation for Decision Makers 2014
ISBN: 9781118654545
6th edition
Authors: Shirley Dennis Escoffier, Karen Fortin