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ACA Basics - The Alternative Marriage Calculation for Newlyweds

Taxpayers Who Married in 2014 Should Report Change to ACA Marketplace

Newlyweds in 2014 who received advance premium tax credit payments should take note of the Alternative Marriage Calculation on Form 8962 – Premium Tax Credit.  The alternative calculation could allow the newly married couple to reduce any excess advance premium tax credit (APTC) repayments. 

The Alternative Marriage Calculation may be available to taxpayers who: 

  • are unmarried at the beginning of the taxable year, and
  • are married at the end of the taxable year, and
  • at least one or both spouses received advanced premium tax credit payments for the year, and are using the Married Filing Jointly filing status. 

Electing to use the alternative calculation is optional, but those meeting the criteria above should use the calculation to determine if they can reduce their APTC repayment.  IRS Form 8962 instructions, which includes examples of the calculation, will help you determine the taxpayer’s eligibility for the alternative calculation.  

Tip for Marketplace Coverage Holders

If advance payments of the premium tax credit (APTC) are made during the year for the taxpayer or another individual in his or her tax family, certain changes in circumstances should be promptly reported to the Marketplace where the taxpayer enrolled in the qualified health plan. Reporting changes in circumstances promptly will allow the Marketplace to adjust the APTC to more accurately reflect the Premium Tax Credit (PTC) estimated to be taken on the tax return.  

Source: Internal Revenue Service at http://www.irs.gov/publications/p17/ch37.html

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