$6,269 × (EIb –[21.06% − $18,190)] Provision Effective MTR Code § (estimated number Relevant Adjusted Gross Income How Phaseout Works in relevant AGI (AGI) Range by Filing Status range) 2) Limited phaseout § 21 $15,000–$43,001 Dependent care credit: Statutory tax rate + 1.5% of dependent care $Dep. care expenses × [0.35 [0.15 × – (assumes maximum credit (i.e., credit [(AGI 15,000) ÷ 30,000]] (round up – taxpayer’s qualifying expenses are to whole %. Max. = 0.15. Min. = 0)] (2 M) $3,000 for one qualifying person)) Statutory tax rate + 3% Max. $Dep. care expenses = $3,000 if one qualifying person. (assumes maximum credit (i.e., Max. $Dep. care expenses = $6,000 if taxpayer’s total qualifying expenses are two or more qualifying persons. $6,000 for two qualifying persons)) ≥ 3) Phaseout of Varies (Individuals whose household Premium assistance credit: credit to pay health income is at least 100% but not more § 36B Varies care premium than 400% of the poverty line who Premium for a plan” “benchmark purchased on the aren't eligible for Medicaid or contribution” “expected employer-sponsored insurance) “exchange” Retirement Related 4) Phaseout of § 22 Single or HH: $7,500–maximum of varies Statutory rate + 7.5% elderly or disabled $17,500 credit Joint: $10,000–max. of $20,000c (< 0.1 M) 5) Phaseout of § 86 Taxable S.S. benefits: social security Single or HH: $25,000–variousd 50% × (Provisional income 25,000) Statutory rate (for tier) × 1.5 – (S.S.) benefits Joint: $32,000–variousd 50% × (Provisional income 32,000) – exclusion Lesser of 50% × (S.S.benefits) or Single or HH: $34,000–variousd (7 M) Statutory rate (for second tier) × 1.85 $4,500 + 85% × (Prov. inc.– 34,000).
$6,269 –[21.06% × (EIb − $18,190)] Provision (estimated number in relevant AGI range) Code § Relevant Adjusted Gross Income (AGI) Range by Filing Status How Phaseout Works Effective MTR 2) Limited phaseout of dependent care credit (2 M) § 21 $15,000–$43,001 Dependent care credit: $Dep. care expenses × [0.35 – [0.15 × [(AGI – 15,000) ÷ 30,000]] (round up to whole %. Max. = 0.15. Min. = 0)] Max. $Dep. care expenses = $3,000 if one qualifying person. Max. $Dep. care expenses = $6,000 if two or more qualifying persons. Statutory tax rate + 1.5% (assumes maximum credit (i.e., taxpayer’s qualifying expenses are $3,000 for one qualifying person)) Statutory tax rate + 3% (assumes maximum credit (i.e., taxpayer’s total qualifying expenses are $6,000 for ≥ two qualifying persons)) 3) Phaseout of credit to pay health care premium purchased on the “exchange” § 36B Varies (Individuals whose household income is at least 100% but not more than 400% of the poverty line who aren't eligible for Medicaid or employer-sponsored insurance) Premium assistance credit: Premium for a “benchmark plan” “expected contribution” Varies Retirement Related 4) Phaseout of elderly or disabled credit (< 0.1 M) § 22 Single or HH: $7,500–maximum of $17,500 Joint: $10,000–max. of $20,000c varies Statutory rate + 7.5% 5) Phaseout of social security (S.S.) benefits exclusion (7 M) § 86 Single or HH: $25,000–variousd Joint: $32,000–variousd Single or HH: $34,000–variousd Taxable S.S. benefits: 50% × (Provisional income – 25,000) 50% × (Provisional income – 32,000) Lesser of 50% × (S.S.benefits) or $4,500 + 85% × (Prov. inc.– 34,000). Statutory rate (for tier) × 1.5 Statutory rate (for second tier) × 1.85
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