Asked by seydi ortiz on Jun 29, 2024

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What is the "applicable figure" used to determine a taxpayer's contribution amount for purposes of calculating the appropriate premium tax credit if the taxpayer has a household size of 5 and household income of $44,000?

A) 0) 0200.
B) 0) 0430.
C) 0) 0543.
D) Cannot be determined with the information provided.

Premium Tax Credit

A refundable tax credit designed to help eligible individuals and families with low to moderate income afford health insurance purchased through the Health Insurance Marketplace.

Taxpayer Contribution Amount

The sum of money contributed by a taxpayer towards taxes, retirement accounts, or other eligible investments, potentially affecting tax calculations.

  • Understand the calculation of the premium tax credit including the factors that affect the credit amount.
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ZK
Zybrea KnightJul 06, 2024
Final Answer :
B
Explanation :
The applicable figure is based on the taxpayer's household income and is determined by the Department of Health and Human Services. For a household size of 5 and income of $44,000, the applicable figure for the 2021 tax year is 4.30%. This means that the taxpayer would need to contribute 4.30% of their income toward the cost of a benchmark health plan, and the premium tax credit would cover the remainder of the cost.