Health Care

Health Care

How do health care reform and taxes connect? The Affordable Care Act is single largest change to the tax code in two decades. Find help navigating the complexities of the new health care legislation, Medicare, Medicaid and other medical deductions.

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Pioneer
Posts: 2
Registered: ‎02-12-2018

Advance Premiu Tax Credit After Getting Married

My (now) wife had insurance through the Marketplace from Jan-Sep 2017. We were married in September of 2017 and canceled her coverage and added her to the coverage from my employer in September after we were married. I am working on filing our taxes now through H&R Block online and it appears we have to pay back all of her premium tax credits for her insurance she had while she was single (over $2000) . Is this correct? This seems ridiculousness since the credits she received were only while she was single and now it is using both of our incomes to calculate everything...

Associate (Pioneer)
Posts: 38
Registered: ‎02-22-2017

Re: Advance Premiu Tax Credit After Getting Married

Hello and welcome to the community.

 

Congratulations on getting married. As you canceled her Marketplace Insurance in the month you got married you can use the Alternative Marriage Calculation (Form 8962) and this should greatly affect this outcome. This form basis the tax credit on her income only until you got married so your income will not be considered for any calculations until September. I am not overly familiar with the online software but Form 8962 should be available in the section on the premium tax credit, if not there is a place to search for / add forms and it can be found there.

 

Hope this helps you out, and if you have any other questions feel free to ask.

Roger H,

Tax Specialist, Canton, Ohio
Pioneer
Posts: 2
Registered: ‎02-12-2018

Re: Advance Premiu Tax Credit After Getting Married

Thank you for the reply, Roger!

 

I am not seeing any mention of Form 8962 on the online version but it did ask for what month we got married as well as the credits received by month (which stopped in September) so I am assuming it filled this form in automatically. Before it asked what month we got married, it said it would calculate how much of the credits we would have to pay back. It still seems crazy to me that we have to pay back the entire years worth of credits but after reading other people's stories with similar circumstances, it appears this may be the case. Any suggestions on ways to less this burden? Filling separately doesn't seem to help. 

 

Thanks again for the response!