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dimitri771
Level 2

Market Place - Marriage Penalty

Hello,

 

My wife had marketplace medical until this month. She qualified in the lowest income brakcket paying the minimum premium.

Now that we are married, we are going to file jointly.

I heard that they will make her status as married for the entire 2019. Therefore, Marketplace might bill as she was married using our combined income for 2019.

 

I truly believe that this is crazy as we only got married this month.

 

What would be the best course of action in order to minimize/avoid the potential penalty?

 

1 Best answer

Accepted Solutions
DoninGA
Level 15

Market Place - Marriage Penalty

You will have to review the Form 8962, Premium Tax Credit, Alternative calculation for year of marriage starting on page 10 for detailed instructions to calculate the how much of the tax credit must be repaid - https://www.irs.gov/pub/irs-pdf/i8962.pdf#page=10

 

Or use the TurboTax 2019 software to complete your tax return next year.  Enter the Form 1095-A received from the Marketplace in the Health Insurance section and after entry of the form you will be asked if you were married during the year.  The software will calculate for you any tax credits that have to be repaid.

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5 Replies
DoninGA
Level 15

Market Place - Marriage Penalty

Notify the marketplace that you are now married so they will adjust or eliminate the premium credit your spouse was receiving.  Go to this healthcare.gov website to report changes - https://www.healthcare.gov/reporting-changes/which-changes-to-report/

dimitri771
Level 2

Market Place - Marriage Penalty

What is the potential penalty? Will we be hit for 10 months even if we were not married?

Critter
Level 15
dimitri771
Level 2

Market Place - Marriage Penalty

Yes, I read this article. Wanted to know the best way to minimize the penalty. 

DoninGA
Level 15

Market Place - Marriage Penalty

You will have to review the Form 8962, Premium Tax Credit, Alternative calculation for year of marriage starting on page 10 for detailed instructions to calculate the how much of the tax credit must be repaid - https://www.irs.gov/pub/irs-pdf/i8962.pdf#page=10

 

Or use the TurboTax 2019 software to complete your tax return next year.  Enter the Form 1095-A received from the Marketplace in the Health Insurance section and after entry of the form you will be asked if you were married during the year.  The software will calculate for you any tax credits that have to be repaid.

View solution in original post

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