Asked by celeste richmond on Jun 16, 2024

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Carla is age 64 and Xavier is age 66.They file their tax return as married filing jointly.During all of 2017 they did not have qualifying health coverage nor were they eligible for an exemption.Their household income was $84,990.What is the amount of shared responsibility payment they must report on their 2017 income tax return?

A) $695
B) $1,390
C) $1,573.50
D) $2,125

Qualifying Health Coverage

is insurance that meets the minimum essential medical benefits and other requirements set by the Affordable Care Act or other applicable laws.

Shared Responsibility Payment

This refers to a penalty that was imposed by the Affordable Care Act on individuals who did not obtain health insurance coverage that met the federal requirements.

Household Income

The total income received by all members of a household, combining various sources of income into one figure.

  • Calculate elementary tax responsibilities and understand the components that modify them.
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AP
Aquan PayneJun 16, 2024
Final Answer :
C
Explanation :
Carla and Xavier are both over the age of 65, which means they are exempt from the shared responsibility payment. However, if their combined income is more than $64,000, they will have to pay the maximum penalty amount, which is $1,573.50. Therefore, the correct answer is C.