Who Form 1094 B Deductions 2022-2023

Instructions and Help about Who Form 1094 B Deductions

Hi my name is Keith ho welcome to another na se minute by now most of you have heard of the Affordable Care Act the ACA and most of you understand that if you don't have an ACA compliant health insurance policy you're going to pay an extra tax on your tax return now many of you have chosen to forgo the ACA compliant plan find perhaps a cheaper policy based on your specific family's circumstances and choose to go ahead and pay that penalty and still save a few dollars because the policy is much less expensive so it's very important to know exactly what that penalty will be now the penalty itself is calculated in two different formats and you have to pay the higher of the two calculations now the first calculation is basically a set dollar amount per person so it's 695 dollars per person plus half that amount for each child under age 18 so relatively easy the second calculation is two-point-five percent of your household income remember you will pay the higher of these two calculations now that first calculation again is relatively easy 695 dollars per person so if you're single taxpayer that's your calculation the first penalty is 695 dollars if you're a married couple there are two of you that's 695 each or thirteen hundred and ninety dollars if you have two kids that's another 347 50 per kid which totals 2085 dollars now if you have more than two kids they still limit it at two so the maximum penalty for this part of the calculation would be 2085 dollars now the second piece is a little more difficult as you might imagine it's 2.5 percent of your household income now household income is basically your adjusted gross income that's...