Complete the Jaspers' Shared Responsibility Payment Worksheet.

Shared Responsibility Payment Worksheet*

If required, round months to one decimal place. Round dollars amounts to the nearest dollar.

Complete the monthly columns by placing "X's" in each month in which you or another member of your tax household had neither minimum essential coverage nor a coverage exemption.

Name

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

David

X

X

X

X

Darlene

X

X

X

X

Sam

X

X

X

X

1.

Total number of X's in a month. If 5 or more, enter 5

2.

Total number of X's in a month for individuals 18 or over*

3.

One-half the number of X's in a month for individuals under 18*

4.

Add lines 2 and 3 for each month

5.

Multiply line 4 by $695 for each month. If $2,085 or more, enter $2,085

6.

Sum of the monthly amounts entered on line 1

7.

Enter your household income

8.

Enter your filing threshold

9.

Subtract line 8 from line 7

10.

Multiply line 9 by 2.5% (0.025)

11.

Is line 10 more than $2,085?

Yes. Multiply line 10 by the number of months for which line 1 is more than zero

}

. . . . . . . .

No. Enter the amount from line 14 of the Flat Dollar Amount Worksheet

12.

Divide line 11 by 12.0

13.

Multiply line 6 by $283**

14.

Enter the smaller of line 12 or line 13 here and on Form 1040, Schedule 4, Line 61 This is your shared responsibility payment

*For purposes of figuring the shared responsibility payment, an individual is considered under 18 for an entire month if he or she did not turn 18 before the first day of the month. An individual turns 18 on the anniversary of the day the individual was born. For example, someone born on March 1, 2001, is considered age 18 on March 1, 2019, and, therefore, is not considered age 18 for purposes of the shared responsibility payment until April 2019.

Comprehensive Problem 7-1

David and Darlene Jasper have one child, Sam, who is 6 years old (birthdate July 1, 2012). The Jaspers reside at 4639 Honeysuckle Lane, Los Angeles, CA 90248. David's Social Security number is 577-11-3311, Darlene's is 477-98-4731, and Sam's is 589-22-1142. David's birthdate is May 29, 1985 and Darlene's birthday is January 31, 1987. David and Darlene's earnings and withholdings for 2018 are:

David:	Earnings from Apple Company (office manager)	$26,500
	Federal income tax withheld	2,800
	State income tax withheld	1,050
Darlene:	Earnings from Rose Company (perfume tester)	$25,200
	Federal income tax withheld	2,650
	State income tax withheld	1,000

Their other income includes interest from Pine Tree Savings and Loan of $1,900. Other information and expenditures for 2018 are as follows:

Interest:	On home acquisition mortgage	$11,200
	Credit card	925
Taxes:	Property taxes on personal residence	1,300
	State income taxes paid in 2018 (for 2017)	315
Contribution (with written acknowledgement) to church		1,020
Medical insurance		675
Medical and dental expenses		5,785
Income tax return preparation fee paid in 2018		200
Actual general state sales tax for 2018		1,016
Payment of union dues		225

David and Darlene received a letter from Sam's daycare provider which contains information regarding child care expenses.

In 2018, David lost his job. David paid for one month of insurance out-of-pocket and then the family went without insurance for September through December 2018. They are not eligible for any exemptions from health care coverage.

Required: Complete David and Darlene's Form 1040, Schedule 3, Schedule 4, Schedule A, Schedule B, Form 2441, Shared Responsibility Payment Worksheet and Flat Dollar Amount Worksheet.

• Make realistic assumptions about any missing data.
• The taxpayers do not want to make a contribution to the presidential election campaign.
• Enter all amounts as positive numbers.
• If an amount box does not require an entry or the answer is zero, enter "0".
• If required round any dollar amount to the nearest dollar (unless instructed otherwise on the tax form).
• Assume alternative minimum tax is not a factor.