Question

WHAT IS THE 2016 REAPAYMENT LIMITATION FOR A SINGLE TAXPAYER WHO HAS INCOME AT A 350% ÓVERTY LEVEL?

a) $300

b) $750

c) $1,275

d) None. The taxpayer must repay all of the excess advanced premium tax credit.

Answer 1

Solution:

The correct option is c) $1,275

The amount of excess advance credit payments that are required to repay may be limited based on the household income and filling status. On the other hand, if the person’s household income is 400% or more of the applicable federal poverty line, the person will have to repay all of the advance credit payments.

Here in the question,

Filling Status is Single Taxpayer

Income Percentage at poverty level = 350%

So the limitation amount for single taxpayer at 350% Poverty Level (i.e. At least 300% but less than 400% household income of federal poverty line) is $1,275

If the person’s filling status is Married Filling Separately, the repayment limitation above applied to both spouses separately based on the household income reported on each return.

Hence, 2016 REPAYMENT LIMITATION FOR A SINGLE TAXPAYER WHO HAS INCOME AT A 350% POVERTY LEVEL is c) $1,275

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