Choose the response that accurately completes the following sentence. A taxpayer claiming the Premium Tax Credit:...

Choose the response that accurately completes the following sentence. A taxpayer claiming the Premium Tax Credit:

A. May be claimed as a dependent on another person's return, as long as they are under 27.

B. May have employer-sponsored health care coverage.

C. Must have household income for their family size that is less than 150% of the federal poverty level.

D. Will receive a refund if the amount of the credit is larger than the tax they owe.

Expert Solution

As per the information provide in the question the most accurately sentence for a taxpayer who is claiming the Premium tax credit is " Will receive a refund if the amount of the credit is larger than the tax they owe".

Reson : The Premium Tax Credit is a tax credit which provides financial assitance to pay the premiums for the qualified health plan offered through a Marketplace by reducing the amount of tax one owe by giving a refund, provided Form 8962 has been filed to compute and premium tax credit has taken in return.

Other response provided in question are not accuralely related to claiming Premium tax credit due to not qualifiying the eligibility creteria of claiming Premium Tax credit which is as below:-

Eligibility creteria of claiming Premium Tax Credit:

1) Income Criteria : To be eligible for premium tax credit , one's household income must be at least 100% but not more than 400% of the federal poverty line for his family size.

2) Premium Tax credit cannot be claimed as a dependent by another person.

3) One must be not eligible for affordable health insurance coverage through an employer sponsored health care plan like Medicare, Medicaid or Tricare.

Hence as per above details the most accurate response which completes the claim of Premium tax credit is " Will receive a refund if the amount of the credit is larger than the tax they owe".

ekkarill92 answered 1 year ago

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