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: ‎02-22-2017

Heathcare PTC Alternative Calculation for Year of Marriage Form 8962

Hello,

 

When filling out my taxes online it seems that the software is not taking into account my husband and I got married in December 2016.

 

We are eligible for the Alternative Calculation for the Year of Marriage using form 896.

 

Could someone help on how to get the software to recognize this? It should make quite a difference in how much we have to pay back of the health credit. Will this be fixed by a tax pro if using the best of both option?

 

Thanks!

Tax Pro
Posts: 5,715
Registered: ‎02-23-2016

Re: Heathcare PTC Alternative Calculation for Year of Marriage Form 8962

Hi joygirl21,

 

Welcome to the H&R Block community.

 

You can use the best of both option if you would like and they'll fix this for you, however health insurance is one of my areas of expertise and I'm willing to help you out for free.

 

Please look for a private message from me.

 

Louis,

Senior Tax Advisor (Tampa, FL)

Tax Pro
Posts: 5,715
Registered: ‎02-23-2016

Re: Heathcare PTC Alternative Calculation for Year of Marriage Form 8962

Hi joygirl21,

 

I've actually been working on this one for a while over the last two days.

 

For this issue you may have to go to an H&R Block office or send your return to a tax professional in your area using "best of both".  If you're using the desktop software then I can do the calculations manually for you so that you can enter them straight into the form, however the online software is not able to do the special calculation from what I'm seeing.

 

In order to manually calculate I would need a line-by-line description of your 1095-A as well as a line-by-line description of your 1040 page 1.  Send them through our private message if you would like me to help you with the calculation so that your information is not visible to everyone on the community board.

 

Louis

Pioneer
Posts: 2
Registered: ‎02-22-2017

Re: Heathcare PTC Alternative Calculation for Year of Marriage Form 8962

Thank you! I have sent the information via private message.

 

 

Tax Pro
Posts: 5,715
Registered: ‎02-23-2016

Re: Heathcare PTC Alternative Calculation for Year of Marriage Form 8962

[ Edited ]

Hi joygirl21,

 

You were eligible for the PTC using the year of marriage calculation by a narrow margin as we discussed in our private message, but what it all comes down to is your premium amounts versus your required contribution amount.  Had your premium amounts been higher the year of marriage calculation may have helped, but with the amounts on your 1095-A being what they were the required contribution amount is greater even when using the year of marriage calculation to calculate it separately for each of you and your husband.  Therefore the result is a repayment of the premium tax credit no matter which way you go.  I checked over the math 3 times just in case I missed anything but the numbers were solid.

 

The only possibility of lowering the PTC repayment for one or both of you and your husband would be to file separately.  If you file MFS you will still be ineligible for the premium tax credit, but the 8962 will be calculated based on your individual income rather than 1/2 of your joint income the way the year of marriage calculation does it.  So if one of you has a really low income and the other has high income at least of you will have a much lower PTC repayment.

 

If you have any other questions I'll be glad to help.

 

Louis

Pioneer
Posts: 1
Registered: ‎03-13-2017

Re: Heathcare PTC Alternative Calculation for Year of Marriage Form 8962

Having a similar issue with this. Finally figured out how to get the software to accept my numbers after using the 8962 and 974 worksheets but when I sent my return in it was rejected. Says my dependents do not match. I did not fill out box 35 since I had job issued insurance and did fill out box 36 as 1 for my wife having the marketplace for 7 months. The instruction book only gives an example if both use the marketplace.

Tax Pro
Posts: 5,715
Registered: ‎02-23-2016

Re: Heathcare PTC Alternative Calculation for Year of Marriage Form 8962

Hi stressedout,

 

Using the alternative calculation for the year of marraige you're still going to have a repayment, but it will be much less than the 100% repayment that you would be looking at if you went by the normal calculation that takes 100% of your income into account.  Specifically the repayment is $1,463 instead of the entire $2,464 premium tax credit that your wife received, so the alternative calculation saved you about $1,000.  The calculation is based on 1/2 of your total income and usually does come out more favorable for newly married couples as it did for you.  I sent your recalculated 8962 through our private message.

 

Louis

Valued Pioneer
Posts: 3
Registered: ‎04-02-2017

Re: Heathcare PTC Alternative Calculation for Year of Marriage Form 8962

Hello, I've been having the same problem!! Trying to figure it out for weeks. I have the numbers figured out but since my husband didn't have marketplace coverage it rejects every time. How did you fix it??
Pioneer
Posts: 2
Registered: ‎04-13-2017

Re: Heathcare PTC Alternative Calculation for Year of Marriage Form 8962

can you give me any help on the 8962 alternative calculation for year of marriage?   I've called the IRS but they have no one trained for that.  I'm using taxcut but it prompts me to fill out the 8962 on my own.  I've worked through worksheets one and two and have what I think is my alternative monthly contribution but I'm just not sure.  Also I keep getting an error message with line 35 saying my alternative family size does not equal my exemptions.  I'm at a loss and time is running out and wouldn't you know it, I have to be on the road to go to a family funeral this weekend.  Any advise would be appreciated. 

Pioneer
Posts: 2
Registered: ‎04-13-2017

Re: Heathcare PTC Alternative Calculation for Year of Marriage Form 8962

I'm having a problem with line 35 also.  My husband had work issued insurance too.  Tax cut keeps flagging that line as an issue saying that my alternative family size does not equal my exemptions.  If it did, it wouldn't be alternative.