Caprice is a single 42-year-old with income of $12,000 in 2014. She lacked minimum essential coverage for 7 months in 2014. What is her individual shared responsibility?

Question

​Caprice is a single 42-year-old with income of $12,000 in 2014. She lacked minimum essential coverage for 7 months in 2014. What is her individual shared responsibility?

Quizplus · Accepted Answer

Caprice's individual shared responsibility payment is calculated as the greater of:

1. A flat fee of $95 per uninsured adult, and $47.50 per uninsured child under 18 (up to $285 for a family), OR
2. 1% of household income above the tax filing threshold

In this case, Caprice's flat fee would be $95 since she is uninsured and over 18. However, the 1% of her income above the tax filing threshold (which was $10,150 in 2014) is only $85 ($12,000 - $10,150 = $1,850 x 1% = $18.50). Therefore, Caprice's individual shared responsibility payment is the greater of $95 or $18.50, which is $95. Since her income is below 200% of the federal poverty line, she may qualify for an exemption or reduced payment, but that is not specified in the question.

​Caprice Is a Single 42-Year-Old with Income of $12,000 in 2014

Caprice Is a Single 42-Year-Old with Income of $12,000 in 2014