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.
Eligibility to make the election
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;
- 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.
Determining the Form 8962 entries
Before making any entries in the tax return, complete the steps outlined in Publication 974. These steps will produce two sets of information: (a) the eight numbers and dollar amounts needed for Part V of Form 8962, and (b) the amounts to enter in Part II of Form 8962.
- Determine for both the taxpayer and the spouse their "alternative family size". (Note that in an unusual situation it's possible for an individual to qualify to be a dependent of either family, so you'll just include them in one or the other.)
- If someone in the taxpayer's family was covered under a marketplace plan for the month they got married and prior:
- Determine the taxpayer's alternative monthly contribution amount by completing Worksheet I Lines 1 through 7.
- Also in Worksheet I, determine the taxpayer's "alternative start month" (their first month with someone in their family on marketplace insurance) and their "alternative stop month" (the earlier of (a) the last month with someone in their family on marketplace insurance or (b) the month they got married).
- Complete Worksheet II to determine the amounts of the taxpayer's Form 1095-A that will be entered in Form 8962.
- Determine the spouse's monthly contribution by completing Worksheet III Lines 1 through 7.
- Also in Worksheet III, determine the spouse's "alternative start month" (their first month with someone in their family on marketplace insurance) and their "alternative stop month" (the earlier of (a) the last month with someone in their family on marketplace insurance or (b) the month they got married).
- Complete Worksheet IV to determine the amounts of the spouse's Form 1095-A that will be entered in Form 8962.
Entries in the tax return
To elect the Alternative Calculation for Year of Marriage in TaxSlayer 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
- Alternative Calculation for Year of Marriage (Form 8962 Part 5) - Enter here the eight numbers and dollar amounts determined above five steps.
- Enter Form 1095-A Amounts (Form 8962 Part 2) - Enter the Form 1095-A amounts as determined in Worksheet 3 in Form 8962.
Note: This is a guide to entering information for the Alternative Year of Marriage Calculation in the TaxSlayer Pro program. It is not intended as tax advice. Review the underlying resources under Additional Information below.
IRS: Publication 974: Premium Tax Credit (PTC)