PTC and MFS

[Randall]

One spouseon Medicare.  Other spouse has health ins thru market place with 1095-A.  Joint filing, Form 8962 results in paying back $1989 in PTC.  Instructions say if married filing separately, PTC cannot be taken.  But ATX Form 8962 shows spouse with 1095-A getting another $522 in PTC.  Is this correct?  Am I doing something incorrectly on the input?

[Lion EA]

If MFS and low income (less than 400% poverty level?), there's a cap on repayment of APTC that can keep the amount owed lower.

There are exceptions for spousal abuse and living separate and...,so make sure you answer all the requirements correctly. I would NOT expect another $522 in PTC if MFS and living together.

[Randall]

9 hours ago, Lion EA said:

If MFS and low income (less than 400% poverty level?), there's a cap on repayment of APTC that can keep the amount owed lower.

There are exceptions for spousal abuse and living separate and...,so make sure you answer all the requirements correctly. I would NOT expect another $522 in PTC if MFS and living together.

I wasn't expecting another $522 either. That's what surprised me.  I saw the exceptions but they are married and living together and no spousal abuse.  This spouse actually has higher income than the other spouse.  I'll take another look and see if I have all the right boxes checked.

[Lion EA]

So the spouse without APTC has lower income? Maybe your client does qualify for more? Surprised, but I don't have a lot of clients using the marketplace so haven't run into this scenario. Keep us posted on how this works out.

[Randall]

On the top of Form 8962 is a check box if filing married separately and no exceptions apply.  It also says to see instructions.  The instructions say married filing separately makes you ineligible for the PTC (unless exceptions apply) and also say not to enter the numbers except the far right column.  When I did that, the full amount of the PTC was caculated as excess and had to be paid back.  The exceptions do not apply to my client.  Obviously in my case, it is better to file jointly.  They have to pay back some of the PTC but not all of it if they filed separately.