Compute the collins premium tax credit

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Reference no: EM131871706

Income Tax Accounting

The Affordable Care Act (LO 6.4)

Susan and Stan Collins live in Iowa, are married and have two children ages 6 and 10. In 2016, Susan's income is $38,000 and Stan's is $12,000 and both are self-employed. They also have $500 in interest income from tax exempt bonds. The Collins enrolled in health insurance for all of 2016 through their state exchange but did not elect to have the credit paid in advance. The 2016 year-end Form 1095-A the Collins received from the exchange lists the following information:

Annual premiums $9,800

Annual premium for the designated silver plan in the state $10,800

Federal Poverty Line for a family of four $24,250

Use the 2016 Applicable Figure Table.

Do not round your calculations but round your final answer to the nearest dollar.

Compute the Collins' premium tax credit for 2016.

Reference no: EM131871706

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