Healthcare and a new marriage

[Kaytlyn27]

My partner and I got married in January. We planned to file separately but found out that to receive subsidized healthcare we have to file jointly. I normally file a schedule C for my business and he is an employee at two jobs and contractor at one. From my research it looks like we should both file our taxes normally but then merge our incomes? . . . .any help appreciated.

[jscottjr_CPA]

Hello and congratulations on your wedding!

Except with limited exceptions, married couples need to file a joint return (MFJ) to qualify for the premium tax credit and other savings on marketplace insurance.  See the link below for more information.   You are correct that filing your taxes together is combining your income together on the same return.  The good thing is that in most cases, you will have a lower tax bill than if you filed separately.

With TurboTax you will enter the information for each spouse separately, starting with the personal information.  Early in the process TurboTax will allow you to confirm your filing status as MFJ, which should give you the best tax outcome.

As you enter other income information, TurboTax may ask you to whom a document belongs "Is this W-2 for Jamie or Robin?".  When it comes to your self-employment activities, you will similarly enter your information separately, keeping the income and expenses separated.  You'll both have a separate Schedule C if your spouse is a contractor.  TurboTax will handle combining your income and making sure you get all the deductions for which you qualify.

Additional information about the Premium Tax Credit:

https://www.irs.gov/affordable-care-act/individuals-and-families/questions-and-answers-on-the-premiu...

An tax article for newlyweds:

https://turbotax.intuit.com/tax-tips/marriage/getting-married/L0DvEUlEC

Thanks for reaching out,

jscottjr_CPA

[KarenL4]

Hi, Kaytlyn27,

Thanks for reaching out and best wishes on your life together!  I think you are referring to the Affordable Care Act requirement that, in order to be eligible for a premium tax credit, you need to file a joint federal income tax return in the year you want coverage (unless you meet one of the exceptions).  Nice researching!

When you file your taxes using the Married Filing Jointly status, you will each enter your own income into that single tax return.  Each self-employed business will have it's own Schedule C (Profit or Loss from a Business-Sole Proprietorship) as well.  It's perfectly fine to have multiple Schedule C's and multiple W-2's in a single return and you can even have that in a single person's tax return if they have multiple business types.  TurboTax also asks you for these forms which person the business (or job) relates to, so you don't need to worry!

Since you have self-employment, I also like to make sure folks are aware of the possible requirement to pay Self-Employment Taxes quarterly.  This article gives you more information about that and you can always come back here and post more questions!

Please cheer with a thumbs up below if this article helps!

Regards,

Karen