PTC exceptions

[ILLMAS]

Has anyone had a client request an exception for PTC (MFS)?  If yes, what type of documentation did you request as part of your due diligence?

Thanks

[Slippery Pencil]

Premium Tax Credit? Exception to not claim it?

[kathyc2]

Are you using the living apart and qualifying as HOH exception?  Or, the domestic abuse exception?

[ILLMAS]

It happens to be both, the grounds of divorce is not set in stone yet, but the TP is working on obtaining a doctors letter to support the claim.  I spoke to a CPA friend and he mentioned for stuff like this to make sure you have supporting documents  to cover yourself.

[kathyc2]

If one of the spouses qualifies as HOH you don't need to worry about the domestic abuse exception.  I would just use the normal due diligence for HOH. 

[ILLMAS]

2 minutes ago, kathyc2 said:

If one of the spouses qualifies as HOH you don't need to worry about the domestic abuse exception.  I would just use the normal due diligence for HOH. 

Sorry it's MFS, not HOH.

[kathyc2]

I've not had that but it stinks that we need to act as social workers to prepare a tax return.  Is the spouse that is claiming abuse the only one that had ACA?  Had you prepared prior returns for them?

[ILLMAS]

Exactly, I prepared the prior year but the TP did not have Health insurance via the exchange. 

[kathyc2]

It's kind of a touchy situation.  If someone is truly abused, I wouldn't want to give the impression that I don't believe them.  On the other hand, they may just be claiming it to save money.  Use your gut instinct, but I think I would have the TP write out and sign a description to keep in file and explaining to them that you need this for both of your protection.