Question

If a taxpayer's 2020 household income of $60,000 places the taxpayer at 350% of the federal poverty level, what is the taxpayer's normal expected contribution when calculating the refundable tax credit for which the taxpayer may be eligible under the PPACA to purchase a qualified health plan?

Answer 1

The answer is $5,700.

Step-by-step explanation:

With an income of $ 60,000, the tax payer is at 350% of the Federal Poverty Level or FPL, so the normal expected contribution is 9.5% of his income.

The normal expected contribution = 9.5% of his income

= 60000*9.5%

= $5,700

Therefore, The taxpayer's normal expected contribution when calculating the refundable tax credit for which the taxpayer may be eligible under the ppaca to purchase a qualified health plan is $5,700.