Repayment by a taxpayer of any excess advance health insurance premium tax credi
ID: 2459012 • Letter: R
Question
Repayment by a taxpayer of any excess advance health insurance premium tax credit may be limited only if the taxpayer's household income is less than _______% of the federal poverty line.
Selection one:
a-600%
b-100%
c-400%
d-200%
Diane received $60,000 in compensation from her employer who also agreed to pay her Social Security taxes of $3,720 and Medicare taxes of $870 without deducting them form her wages. Based solely on these facts, what amount must Diane include in her income?
Selection one:
a-$60,870
b-$64,590
c-$60,000
d-$63,720
Explanation / Answer
Repayment by a taxpayer of any excess advance health insurance premium tax credit may be limited only if the taxpayer's household income is less than c 400% of the federal poverty line.
Diane must include b $64,590 in her income
Both the amounts that the employer should have deducted but did not deduct.