Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Nov 19, 2024 12:38:46 PM

Marketplace Insurance Tax Credit

I am going to be retiring early and will be getting health insurance through Marketplace.  My husband and I prefer to file separately which means I don't qualify for the Marketplace premium tax credit.  Is there a significant tax benefit to us filing jointly so I will qualify for the premium tax credit?  Or will it work out about the same if I itemize deductions at the end of the year?  I won't have much, if any, income during my retirement so I'd like to know which is a better approach.  Thanks.

0 1 7094
1 Replies
Expert Alumni
Jan 9, 2025 12:32:11 PM

Yes, the significant tax benefit to filing jointly is that you will qualify for the Advanced Premium Tax Credit.

 

If you file separately, you will not qualify for the Premium Tax Credit and if one of you itemizes your deductions, both of you will have to even if it's not beneficial for one of you to do so.

 

It is almost always better to file jointly. 

 

Here is a great article explaining the advantages of filing jointly and the consequences of filing separately.  Filing Jointly vs Separately