Question

James, age 35, did not have minimum essential coverage for any part of 2018. If James is single and has 2018 adjusted gross income of $41,000, what is his individual shared responsibility payment? The 2018 MEC flat annual dollar amount is $695 per adult and $347.50 per child limited to $2,085 per household. The standard deduction for filing single is $12,000.

Answer 1

$725

Step-by-step explanation:

Obamacare (or Affordable Care Act) stated that starting in 2014, everyone must have either minimum essential coverage, a coverage exemption or they have to pay a shared responsibility payment.

The shared responsibility payment for 2018 was $695 for each adult and $347.50 for each child, with a family maximum of $2,085, or 2.5% of taxable income, whichever is higher.

(gross income - standard deduction ) x 2.5% = ($41,000 - $12,000) x 2.5% = $725