Asked by Dellarose Dickson on Jul 04, 2024
Verified
Sam and Edna are married with three dependents.They enrolled in a qualified plan through the Marketplace at a cost of $4,900 per year.Their household income was $64,500.Their SLCSP premium is $5,540.What is their premium tax credit?
A) $786.
B) $4,676.
C) $4,900.
D) $5,540.
Premium Tax Credit
A refundable credit that helps eligible individuals and families with low to moderate income afford health insurance purchased through the Health Insurance Marketplace.
SLCSP Premium
Stands for the Second Lowest Cost Silver Plan, which is a reference point used to calculate health insurance premium tax credits under the Affordable Care Act.
Household Income
The combined gross income of all members of a household, typically measured to understand the economic status or to qualify for various programs or loans.
- Calculate the premium tax credit for individuals and families with marketplace insurance plans.
Verified Answer
MW
Muhammad WaqasJul 11, 2024
Final Answer :
A
Explanation :
The premium tax credit is calculated based on the difference between the cost of the Second Lowest Cost Silver Plan (SLCSP) and the amount the taxpayer is required to pay based on their income. Since the SLCSP cost is $5,540 and their actual premium cost is $4,900, the credit is the difference if it's less than the actual premiums paid. However, the calculation is based on a percentage of their income that they are expected to pay for the SLCSP, not the direct difference. Given the information, the correct calculation isn't fully provided, but the closest answer based on the given options and typical tax credit calculation methods would be the smallest amount, which is $786, suggesting it's a calculated amount based on their income and expected contribution towards the SLCSP, not the full difference or the full premium cost.
Learning Objectives
- Calculate the premium tax credit for individuals and families with marketplace insurance plans.