D.C. Mun. Regs. tit. 9, r. 9-3904

Current through Register Vol. 71, No. 49, December 6, 2024

Rule 9-3904 - COMPUTATION OF DISTRICT SHARED RESPONSIBILITY PAYMENT

3904.1

The District shared responsibility payment imposed on a taxpayer in accordance with § 3902 is-

(a) The lesser of:

(1) The sum of the monthly penalty amounts; or

(2) The sum of the monthly District's average bronze plan premiums for the shared responsibility family;

(b) Less the amount of any federal shared responsibility payment imposed on the taxpayer pursuant to § 5000A of the Internal Revenue Code for the same taxable year.

3904.2

"Monthly penalty amount" means, for a month that a nonexempt individual is not covered under minimum essential coverage, 1/12 multiplied by the greater of:

(a) The flat dollar amount; or

(b) The excess income amount.

3904.3

"Flat dollar amount" means the lesser of:

(a) The sum of the applicable dollar amounts for all individuals included in the taxpayer's shared responsibility family; or

(b) Three hundred percent (300%) of the applicable dollar amount (determined without applying § 3904.4(b)) for the taxable year.

3904.4

"Applicable dollar amount" means:

(a) For a nonexempt individual who has attained the age of eighteen (18) before the first day of a month, an amount equal to six hundred ninety- five dollars ($695) for the tax year beginning after December 31, 2018, increased annually, beginning with the tax year commencing after December 31, 2019, by the cost-of- living adjustment (if the adjustment does not result in a multiple of fifty dollars ($50), rounded down to the next lowest multiple of $50); or

(b) For a nonexempt individual who has not attained the age of 18 before the first day of a month, an amount equal to one-half of the applicable dollar amount in paragraph (a) of this section for the taxable year in which the month occurs. For purposes of this paragraph (b), an individual attains the age of 18 on the anniversary of the date when the individual was born. For example, an individual born on March 1, 2001, attains the age of 18 on March 1, 2019.

3904.5

"Excess income amount" means 2.5 percent of the excess of the taxpayer's household income, as defined in § 3999.1(k), that exceeds the taxpayer's applicable filing threshold.

3904.6

"Monthly District's average bronze plan premium" means, for a month for which a shared responsibility payment is imposed, 1/12 of the annual average premium for qualified health plans offered through the District's individual market health benefit exchange established pursuant to Section 5 of the Health Benefit Exchange Authority Establishment Act of 2011, effective March 2, 2012 (D.C. Law 19-94;D.C. Official Code § 31-3171.04(a)(1) ), that have a bronze level of coverage, and would provide coverage for the taxpayer, and if applicable, the taxpayer's spouse, registered domestic partner, or dependents for plan years beginning in the calendar year within which the taxable year ends.

D.C. Mun. Regs. tit. 9, r. 9-3904

Final Rulemaking published at 67 DCR 001235 (2/7/2020)