Caprice is a single 42-year-old with income of $12,000 in 2016. She lacked minimum essential coverage for 7 months in 2016. What is her individual shared responsibility payment amount?

Question

​Caprice is a single 42-year-old with income of $12,000 in 2016. She lacked minimum essential coverage for 7 months in 2016. What is her individual shared responsibility payment amount?

Quizplus · Accepted Answer

Caprice's individual shared responsibility payment for 2016 is the higher of: 
1) 2.5% of her household income ($300) or 
2) The flat fee of $695. 
Since $300 is less than $695, Caprice's payment would be $695. However, because she lacked minimum essential coverage for only 7 months (less than the full year), her payment will be prorated for those months.

The monthly payment is calculated as: 
$695 / 12 months = $57.92

So, Caprice's individual shared responsibility payment for 2016 is $57.92 x 7 months = $405.44.

​Caprice Is a Single 42-Year-Old with Income of $12,000 in 2016

Caprice Is a Single 42-Year-Old with Income of $12,000 in 2016