Question

1. Which of the following statements is incorrect regarding qualifying criteria for the health insurance premium tax credit?

A) Household income must be below designated levels.

B) The taxpayer cannot have access to affordable essential coverage through an employer.

C) The insurance policy must be purchased directly from an insurance company.

D) The individual may not be eligible as a dependent of another taxpayer.

2. If a taxpayer's AGI is greater than $150,000, no penalty will be imposed if the taxpayer pays estimated tax payments in 2018 equal to what percentage of 2017's income tax liability?

A) 90%                                                       

B)100%

C) 105%

D) 110%

3. Laquan and Sabrina Lewis had alternative minimum taxable income of $1,050,000 in 2018 and file a joint return. For purposes of computing the alternative minimum tax, their exemption is

A) $96,900.

B) $59,400.

C) $0.

D) $109,400.

Answer 1

1)Solution: The correct option “ C”i.e The statement that is incorrect regarding qualifying criteria for the health insurance premium tax credit is that the insurance policy must be purchased directly from an insurance company.

One of the qualifying criteria for health insurance premium tax credit is that the insurance coverage should have been taken at the market place.The health insurance market place is a platform on which various insurance plans are available for individuals, families and small businesses.

This Health insurance market place is also known as the Health Insurance Exchange and is a platform where people who are desirous of getting or purchasing an insurance plan are provided with all the information that is required for them to be taking an informed decision.

2)Solution: The correct option “ D”i.e The statement that is correct regarding the non payment of penakty for Tax Payment’s if estimated tax payments in 2018 as a percentage of 2017’s income tax liability is 110%

If the Adjusted Gross Income of the individual as per his tax return exceeds $1,50,000 (unless the individual is married and opts to file the return separately) , the individual is not required to make payments for penalty if his estimated tax liability is either equal to or greater than 110% of the individual’s tax liability in 2017

3)Solution: The correct option “ D”i.e The statement that The for the calculation of Alternate Minimum Tax , the minimum exemption is $109400

Since Rewa and Josh Lewis are a married couple and are filing their return jointly, the threshold income limit for exemption in 2018 is $191500. Since their income is $10,50,000 they are above the threshold limit and are therefore subject to AMT of 28%. The exemption is $109500