Generally, Advance Premium Tax Credit (APTC) received in excess of what the taxpayer is allowed needs to be repaid. If a taxpayer got married during the tax year and their new “tax family” includes an individual with marketplace health insurance who received APTC, an optional calculation, the Alternative Calculation for Year of Marriage, can be elected that may reduce the amount of excess APTC 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.
To elect the Alternative Calculation for Year of Marriage in Keystone Tax Solutions Pro, from the Main Menu of the tax return (Form 1040) select:
- Payments, Estimates & EIC
- Premium Tax Credit (PTC) (8962)
- Allocating Policy Amounts with Another Taxpayer
- Check the box next to Alternative Calculation for Year of Marriage, then select OK
- Complete the steps outlined in Publication 974. These steps involve the following:
- Determine the “alternative family size” for both the taxpayer and the spouse. (Note: In an unusual situation it’s possible for an individual to qualify as a dependent in both families, as illustrated in this section’s discussion in Publication 974. However, the IRS does not allow such a return to be e-filed.)
- Determine the taxpayer’s monthly contribution by completing Worksheet 1 Lines 1 through 7 if someone in their family was covered under a marketplace plan for the month they got married and prior.
- Determine the taxpayer’s “start month” (their first month with someone in their family on marketplace insurance) and their “stop month” (the earlier of the last month with someone in their family on marketplace insurance or the month they got married).
- Determine the spouse’s monthly contribution by completing Worksheet 3 Lines 1 through 7 if someone in their family was covered under a marketplace plan for the month they got married and prior.
- Determine the spouse’s “start month” (their first month with someone in their family on marketplace insurance) and their “stop month” (the earlier of the last month with someone in their family on marketplace insurance or the month they got married).
- Enter the preceding eight numbers and amounts in the Alternative Calculation for Year of Marriage (Form 8962 Part 5) menu.
Note: This is a guide to enter information for the Alternative Year of Marriage Calculation in the Keystone Tax Solutions Pro program. It is not intended as tax advice. Review the underlying resources under Additional Information below.
Additional Information