You are not eligible for the premium tax credit and have to repay the advanced premium tax credit you have received. You still may get protection from having to repay the full amount, as that is based on your income level. You are not prevented from taking advantage of the repayment limitation because you are using the married filing separately filing status.
If you are filing separately solely to avoid having to repay the entire premium tax credit you have received because your spouse's income would necessitate having to pay back the full amount, you will have to weigh the savings of having your repayment limited versus potentially losing out on lower tax rates and other credits that you may not be eligible for if you filed jointly instead of separately. Be sure to consider the impact on your state taxes as well as your federal return, if applicable.
TurboTax will tell you when you enter the information from Form 1095-A:
- The amount of advanced premium tax credit you already received
- The amount of premium tax credit you are eligible for ($0 if married filing separate)
- Your repayment limitation
- The actual amount you have to pay back (the lower of the repayment limitation or the amount of premium tax credit you received)
@dreid3003
