Phillip and Naydeen Rivers are married with two dependent children. The family has household income of $40,160 in 2019. 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?

Question

Quizplus · Accepted Answer

The Rivers' premium tax credit is calculated based on the cost of the silver plan and their household income, not on how much they actually spent on healthcare. Since they spent more on healthcare than the cost of the silver plan, their premium tax credit would be the difference between what they should have spent on the silver plan and their actual income, adjusted according to the federal poverty line and applicable percentages. Given the information, the correct calculation would lead to a premium tax credit of $7,941.

Phillip and Naydeen Rivers Are Married with Two Dependent Children