Question

Phillip and Naydeen Rivers are married with two dependent children. The family has household income of $39,360 in 2018. They paid $11,000 for health care for the year through the health care exchange. A designated silver plan would have cost $9,800. What is the Rivers' premium tax credit?

Answer 1

Answer:

$8,033

Explanation:

The premium tax credit is a refundable tax credit given to qualifying families or individuals that purchase health insurance through the Health Insurance Marketplace. In order to qualify for the premium tax credit a family or individual must have low or moderate income. The lower your income the larger the tax credit.

The tax credit is calculated using the cost of the silver plan available through the Health Insurance Marketplace and subtracting a percentage of the taxpayer's income.

The Rivers' premium tax credit = $9,800 - $1,767 = $8,033