Question about 1095-A (healthcare) and filing jointly

[Vanessa A]

Without seeing all the numbers, it is possible that even without being married that they would have to pay all of it back except $300.  You can look at form 8962 to get an idea of why it is being paid back and the difference was only $300. 

The premium tax credit is based on your income and family size compared to the Federal Poverty Level. For one person the poverty line is $15,060 for 2024.  For 2 people it is $20,440.  If you look at line 7 of your form 8962, you will see a percentage there.  You can use that percentage and compare it to this table.  

[-Lindsay-]

Hi there, I'm desperate and in need of help with this situation.  My situation is a bit more complicated as I married my husband in December 2024 on a K1 visa and am now having to report his income that was made last year in his home country.  We are married filing jointly. I want to verify that TurboTax will allow for A) Form 1116 in order to get a tax credit on the tax he already paid on his income in Jersey (his country, a small island between France and UK). I was initially told to use form 2555 but since he moved here in September, it said I didn't qualify for form 2555 because he didn't pass the physical presence test (?). And, B) I need to verify that if I use Turbo Tax Deluxe, will it guide me through with the form 8962 and helping me with the alternative calculations for year of marriage. I have used 4 other tax programs, all of which have failed in the ACA alternative calculations - 2 of the 4 let me input the info and "allocate", however, the program is failing to calculate the proper repayment. According to government guidelines, my FPL is approximately 270% and I should only be repaying $1,000. However, they're still stating that I owe $1,900 and not taking the FPL into consideration.  This is after supposedly allocating the amounts for just myself over 11 months out of the year. 

I have missed the tax deadline due to these issues and I am truly panicking. Any advice would be really appreciated. 

[Vanessa A]

A) Yes, TurboTax Deluxe does handle form 1116

B) Yes, you can allocate in TurboTax by selecting that you got married during the year.  Your repayment is NOT limited to $1,000 since you are married filing jointly.  If your FPL is 270%, it is limited to $1,900.  The alternative calculation is based on your filing status, not your status for the rest of the year 

You may want to consider using the download version so you can see the forms directly and the calculations.  You cannot do that in the online version, but if you have already gone through 4 programs, it may be helpful for you to see and be able to click on data source and explanations directly on the forms.  You would still ENTER the information in the interview mode but then you can switch to see the forms. 

[-Lindsay-]

Vanessa, I did purchase the downloadable version of TurboTax Deluxe and it saved me! After attempting to do my complex taxes with 4 other programs - 1 of which was another paid for/downloadable version of H&R Block, not only did TurboTax calculate everything for me so easily with regard to the ACA recalculation for marriage, it also walked me through forms 2555 and 1116 and I realized that my husband actually qualified for form 2555 which deducted ALL his foreign income from being taxed, instead of giving me a credit for the tax he already paid. The other programs treated form 2555 much differently and acted as if his 330 day physical presence had to begin on 1/1/2024. The best part is that I'm now getting a refund back and therefore won't be penalized for submitting my taxes late 😁

Thank you!