Carla is age 64 and Xavier is age 66. They file their tax return as married filing jointly. During all of 2015 they did not have qualifying health coverage nor were they eligible for an exemption. Their household income was $54,950. What is the amount of shared responsibility payment they must report on their 2015 income tax return?
A) $0
B) $637
C) $650
D)$662

Question

Quizplus · Accepted Answer

The shared responsibility payment for 2015 is the greater of 2% of household income above the filing threshold or a flat dollar amount. The filing threshold for married filing jointly in 2015 was $20,600. Their income above the threshold is $34,350. 2% of this is $687, but the maximum penalty is capped at the national average premium for a bronze plan, which was $2,484 per year for a couple. The flat dollar amount is $325 per adult, totaling $650. Since 2% of their income above the threshold ($687) is greater than the flat dollar amount ($650), they would pay $662, which is the maximum penalty for 2015.

Carla Is Age 64 and Xavier Is Age 66