Compute susans individual shared responsibility payment

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Reference no: EM131916093

1a. Clarita is a single taxpayer with two dependent children, ages 10 and 12. Clarita pays $3,000 in qualified child care expenses during the year. If her adjusted gross income (all from wages) for the year is $18,500, calculate Clarita's child and dependent care credit for 2016. (Use Table 6.1 below).

1b. Martha has a 3-year-old child and pays $10,000 a year in day care costs. Her salary is $45,000. How much is her child and dependent care credit? (Use Table 6.1 below, but be aware of maximum qualified expense).

1c. Susan is a single taxpayer, 26 years of age, with AGI of $28,000 and no tax-exempt income. She did not have minimum essential coverage for 9 months in 2016. Compute Susan's individual shared responsibility payment for 2016. Note: for 2016, the flat ANNUAL dollar amount is $695 per adult and $347.50 per child, limited to an annual maximum of $2,085 per household.

TABLE 6.1

Adjusted Gross Income

Over/Not Over/%

0 -15000-35%

15000-17000 34%

17000-19000-33%

19000-21000-32%

21000-23000-31%

23000-25000-30%

25000-27000-29%

27000-29000-28%

29000-31000-27%

31000-33000-26%

33000-35000-25%

35000-37000-24%

37000-39000-23%

39000-41000-22%

41000-43000-21%

43000-No Limit-20%

Reference no: EM131916093

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