What if a family gets insurance through the marketplace choosing filing jointly, receives 1095 A, but at the time of filing comes to know that he can only file separately

[zhrastrophysicist]

both husband & wife are international students (non resident aliens).
total household income is approx. $25,000.
have 3 kids. (five family members).
received form 1095A.
are we required to return the tax premium?

[DavidD66 · Accepted solution]

Filing separately does not mean you will have to repay the premium tax credit you received.  That will be determined by the income reported on the tax returns.  You can split the amounts reported on Form 1095-A between the two of you.  You will each put the corresponding amounts on each separate return. You can split the amounts 50/50, or any amount allocation that you agree on.  You will both enter Form 1095-A information.

• After entering the 1095-A, you will see an option to check a box indicating that the policy was shared by somebody who is not on your tax return.  It will then prompt you with further questions to determine how much of it is "allocated" to you (even if it is 0%). Your Married Filing Separately spouse would follow this same procedure.
• If there was Advance credit received (column C of the 1095-A), you have the option to claim 100% of the 1095-A on your tax return, or to "allocate" part (or all) of it to your spouse.  If you both agree, the allocation can be anywhere from 0% to 100%.  If you can not agree how to split the advance tax credit received (column C on the 1095-A), then it is divided by the number of covered individuals on the policy.  For example, if the policy covers 2 people, each person is allocated 50%.

All amounts need to be allocated using the same percentage.  So if you allocate 100% to him/her, he/she also claims 100% of the Advance credit.

[zhrastrophysicist]

First of all, thanks a lot for the detailed answer.
So, what will be the procedure for reporting 1095A and claiming the amount mentioned in column C?
Answering the questions (for 1040-NR) on a website, when I answered 'yes' about 1095A, a message popped up saying that you cannot do this here; you have to file it on a different form. but I didn't see the option that you mentioned in the first point.  Where can I find that question? Can you please suggest to me the best way/ website?

[DaveF1006]

You will need to contact sprint tax here for any questions regarding your 1040 NR. We don't prepare 1040 NR and the procedure may be a little different between a 1040NR and 1040R.