Form 8962 Got married in Nov 2019, Wants 100% of the PTC returned issue

[gposey777]

For 2019, I had health insurance through my company (not the marketplace) and was single/no dependents.  

For 2019, my fiancée(single/no dependents) had health insurance through the marketplace and received a subsidy each month. 

We got married in November 2019.  We are filing MFJ. 

TurboTax is taking 100% of the subsidy back.   I can't allocate premiums since only my husband was in the marketplace.  I had insurance through my company.  

Am I doing something wrong?  is there a way to keep the subsidy for the 11 months before we were considered married? 

On form 8962, it puts the credit on line 11 F (the rest are blank)

I can't figure out if I should be completing Part V and if so HOW? 

Line 14 is YES saying we are eligible to elect the alterative calculation.  but can't understand how? 

Lines 35 and 36 are blank - can't figure out if I should put anything here

Thanks in advance for your help. 

[CatinaT1]

This is a terrible flaw in Marketplace insurance, in my opinion.  The Premium Tax Credit and Advanced Premium Tax Credit is calculated on an annual basis only.  There is no way to indicate your life change and calculate the credit on a monthly basis.  I am in the same situation this year, but fortunately am aware of this flaw.  I am getting married in May and know I will not qualify once my husbands income is added to mine, so I am uninsured the first part of the year until we are married and I can be added to his insurance.

Unfortunately there is nothing that can be done to change this situation.  It has negatively impacted many having to pay back the Advance Premium Tax Credit.

[rjs]

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@gposey777 wrote:

I can't figure out if I should be completing Part V and if so HOW? 

Line 14 is YES saying we are eligible to elect the alterative calculation.  but can't understand how? 

Lines 35 and 36 are blank - can't figure out if I should put anything here

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It sounds like you are filling out Form 8962 by hand. You should try using TurboTax. It will fill out Form 8962 for you when you enter your Form 1095-A. The TurboTax interview for Form 1095-A will ask you whether you got married in 2019. If you say you did, it will automatically try out the Alternative Calculation for Year of Marriage (Part V of Form 8962) and use it if it saves you money.

[gposey777]

Thanks - yes I used turbo tax to complete the form.  Still saying we have to return the credit. 

[DaveF1006]

When you apply for coverage in the Health Insurance Marketplace, you estimate your expected income for the year. Your monthly premium amount is based off of that estimate. if your estimate is lower than your actual income for the year, you must pay back the excess premium amount that you would have paid off of your actual income.

[ESH54]

I'm in same boat. Married in October 2019. Paid into PTC till July when I went on Medicare. Turbotax is telling me I have to repay ENTIRE paid in back. What does one have to do with the other. How Do folks in this position file correctly?

Sounds like Turbotax is failing to deal with this. May need to hire a CPA?

[RobertG]

The reason you have to pay back the PTC is that when you married, your combined incomes are used to figure your eligibility, and you no longer qualify for it.

There is no way to prorate it for the months you were not married.  It's just the way the PTC is calculated. as  DaveF1006 said:

"When you apply for coverage in the Health Insurance Marketplace, you estimate your expected income for the year. Your monthly premium amount is based off of that estimate. if your estimate is lower than your actual income for the year, you must pay back the excess premium amount that you would have paid off of your actual income."

@ESH54

[gposey777]

Based on my  research, I think the answer is that

1. You have to file MFJ

2. Each person will be assigned 50% of the total income regardless of when you were married

3. Then the person that receives the subsidy, using a family size for themselves and any dependent they have WITHOUT the "new" spouse .  It will have it recalculated using the 50% of Joint income for the months prior to marriage (if you are married in Nov, then you put 11 on line part 2 Form 8962).  Depending on this answer, will determine how much subsidy they should have received and that will determine

how much subsidy is to be repaid. 

This is the ALTERNATIVE calculation for year of marriage option Form 8962

There is also another case whereby each person was receiving a subsidy and then gets married, then you assign 50% of the MFJ income and can allocate the subsidy they would each receive individually. 

That is my understanding.  

[kevblank]

This is a bit old, but for other people who find it now (like myself).

You can get the alternate calculation for the year that you get married, but it will still be based on annual joint income, and not a month by month basis.  So even dropping the coverage just prior to marriage will not prevent you from owing (at least some of) the credit back. As another user said, seems to be a weakness in the PTC, not a problem with turbotax.

https://www.verywellhealth.com/how-getting-married-affects-your-premium-tax-credit-5069846