Question about 1095-A (healthcare) and filing jointly

[avigo45]

I got married this year and I am filing jointly with my wife. 

I had a health plan through healthcare.gov last year. Based on my projected income for 2019, I was give roughly a total of $500 in credit last year.

My income was about what I projected, however, when I input my 1095-A, my refund goes down about $500 (it removes all benefits I received in 2019)

Is this somehow also taking my wife's income into account and basically saying I made too much to receive that credit? Or could I be doing something else wrong? Do we have to file separately for me to get the 1095-A benefit?

Thank you for any help. 

[LeonardS]

Yes, your wife's income is being taken into account.  When you Premium Tax Credit is calculated it is based on the Household Income.  If you were to file separately your Household Income would not change.

[avigo45]

Thank you for the fast response!

We got married November last year. The healthcare premium only applied to me. My wife had insurance through her work.

How do I keep the premium I was given? Or does getting married at any time in 2019 mean I automatically lose the premium because legally our incomes have to be combined (wither filing jointly or seperately)? 

[LeonardS]

Yes, it does not matter when the additional income was added to the household income.  The income is not prorated over the entire year.  It is the total income at the end of the year.  If the income was received on December 31 it is treated the same as if it were evenly received throughout the year.

[avigo45]

Thanks again!

So just to confirm, the way is showing on my return is correct (removing all my premium for 2019) and there is nothing else I can do about that? Just want to make sure I'm not leaving money on the table.

[LeonardS]

No, you have done it correctly.

[avigo45]

Hello again.

I was recently told that since I was married in 2019, I could use the "alternative calculation" and enter the date of marriage. Is this true? If so, what is this and how do I do it and it will it save me this money since I am the only one who had a marketplace healthcare plan?

Thank you 

[LeonardS]

Yes, there is an Alternative Calculation for Year of Marriage,  that may reduce the amount of  Advanced Premium Tax Credit APTC that may have to be repaid.

To be eligible to make the election, either 

• Household income in the new tax family was in excess of 400% of the poverty line, and
• The taxpayer and spouse were unmarried at the beginning of the year, were married at the end of the year, and are filing a joint return, and
• Someone in the tax family was enrolled in a qualifying health plan before the taxpayer and spouse's first full calendar month of marriage and received APTC
  -or-
• Household income is 400% of the poverty line or less, and
• More APTC was paid during the year than should have been paid, as calculated in Worksheet 3 found in the Form 8962 instructions.

[avigo45]

We were married at the end of the year. Does that mean we are eligible? If so, how and where do I do an "alternative calculation"? I can't find it anywhere

[LeonardS]

This link Premium Tax Credit (PTC) Pub 974 starting on page 37 has steps to determine your alternative calculation of your Advanced Premium Tax Credit.

[BoarderX]

Thanks for the link for the IRS documentation for alternative calculation of year of marriage. I have a similar situation to above. Is there a way that this is guided thru in Turbo Tax?

[ThomasM125]

TurboTax does not provide for the alternative calculation in the online version of the program. However, if you use the desktop version of TurboTax, you can do the calculation manually and enter the corrected numbers on your tax return.

[user22342342name]

>2020 " TurboTax does not provide for the alternative calculation in the online version of the program. However, if you use the desktop version of TurboTax, you can do the calculation manually and enter the corrected numbers on your tax return."

What about 4 years later, does it provide now in 2024?

[RobertB4444]

It does.  After you enter your 1095-A the system will ask if you got married this year.  Check 'Yes' and it will generate part V of the 8962.

@user22342342name 

[kshill96]

To follow up on this, I got married in Dec 2024, filing jointly for 2024. My spouse received ~$4700 advance payment according to her 1095-A. When I add this information, the full amount is reflected as "federal tax due". When I check "yes" for married this year and select "Dec" for month, it only removes ~$300 due (meaning I still have to pay back ~$4400). Is this accurate? I feel like we should only be dinged for the months we were married (i.e., only Dec). Thanks for the help.