Which Statement Is True Regarding the Advanced Premium Tax Credits

question 10

Multiple Choice

Which statement is true regarding the advanced premium tax credits for individuals and families under the Affordable Care Act?

• A) The tax credit is the same flat amount for individuals and families.
• B) The tax credit is based on income and is designed to limit the amount spent on health insurance premiums to make the insurance affordable.
• C) The tax credit is only available to high-income individuals and families.
• D) The tax credit is an expenses that lowers taxable income.

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Definitions:

Formal Support Systems

Organized groups or institutions that provide social, emotional, or financial support services to individuals and families.

Caregivers

Individuals who provide care and support to family members, friends, or patients who are unable to look after themselves due to illness, disability, or age.

Physically Disabled

Individuals with limitations on their physical functioning, mobility, dexterity, or stamina.

Federal Employment Taxes

Taxes imposed by the federal government on employers and employees, including income tax withholding, Social Security, and Medicare taxes.