Asked Nov 1, 2019

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 8 months in 2018. Compute Susan’s individual shared responsibility payment for 2018.




Expert Answer

Step 1

As per IRS it is mandatory to file 1040 form if the income earned in year 2018 is $12,000 or more for a single tax payer aged under 65.


Susan is a single tax payer aged 26 years. Susan’s 2018 AGI is $28,000 with no tax-exempt income. She must have to file his tax return. Susan is having a minimum essential coverage for 4 months in the year 2018. So, she must make an individual shared responsibility payment for 2018 for a period of 8 months (i.e., she doesn’t have the coverage).

Step 2

Compute Susan shared responsibility payme...


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Shared responsibility payment = (Income - Filing threshold)x Percentage of amount x Period 8 =(S28, 000-S12,000) x 2.5% x - 12 S266.67 or $267


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