Question

Susan and Stan Collins live in Iowa, are married and have two children ages 6 and 10. In 2017, Susan's income is $38,290 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 2017 through their state exchange but did not elect to have the credit paid in advance. The 2017 year-end Form 1095-A 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 Assume that the Collins Form 1095-A also indicated that the total advance payment of the premium tax credit was $9,200. The Federal Poverty Line for a family of four is $24,300. 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% 1,250 2,500 At least 400% No limit No limit Click here to access the 2017 Applicable Figure Table to use for this problem. Calculate the excess advance premium tax credit and the repayment amount for 2017. Round any division to two decimal places before converting to a percent. Excess advance premium tax credit $ Repayment amount $

Answer 1

Ans- Collin 's Premium Tax Credit for 2017:

1-State of Residence	Lowa
2-Number of persons in family	4
3-Annual premium paid by Collins	$9,800
4-Annual premium of designated silver plan in the state	$10,800
5-Modified Adjusted Gross Income	$50,790
6-Federal poverty line for the family of four	$24,300
7-Federal poverty line percentage (Line 5/ Line 6)	209.01%
8-Federal poverty line percentage rounded to whole number	209
9-Applicable percentage (from Form 8962 instructions 2017)	6.75%
10-Amount to be subtracted from designated silver plan	$3,428.33
11-Annaul Premium Tax Credit	$7,371.68
Annual Premium Tax Credit (rounded off)	$7,372

Working Notes:

1-Calculation of Federal Povert Line Percentage:

Federal Poverty Line Percentage(Line 5/Line 6)= $50,790/24,300*100=209.02%

2-Calculation of Amount to be subtracted from designated silver plan:

Amount to be subtracted from designated silver plan= $50,790*6.75%= $3,428.33

3-Calculation of Annual premium tax credit:

Annual premium tax credit=$10,800-$3,428.33=$7,371.67