ACA Healtcare Penalty

dwrench17 · ‎February 5, 2025

In 2024 my fiance purchased an ACA health plan based on her lower income. We ended up getting married in November of 2024 and because of our combined income, we ended up getting the ACA tax penalty of $6912. She is a 1099 employee and deducts her healthcare premiums as an expense. Can we deduct this penalty in 2024 as healthcare premium cost along with her actual premium of $600, against her 1099 income? Or can it be done in 2025 since that is when we actually pay the penalty? what are our options?

Dave

RobertB4444 · ‎February 6, 2025

Yes, you can deduct the repayment of the premiums as health insurance premiums on this return or next year. But not both.

You also should check the little box for 'year of marriage' when entering the 1095-A. That may reduce your penalty.

Additionally, because she was the only one who applied for the ACA you can file as married-filing-separately and depending on her income that may reduce the penalty even further.

@dwrench17

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