Client was receiving APTC for part of 2015. In July he got married and went on spouse employer coverage. Briefly looking at Pub 974 for Alternative Calculation in Year of Marriage, it looks like there is not an option to calculate the credit on his income alone, but only to use 1/2 of MFJ AGI. If I use the 1/2 he will also need to pay back all premiums same as if I don't use the alternate. Can someone that the only option for the alternate calc is 1/2 of AGI? Thx.
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Just an aside....can you tell me where you got Pub 974? IRS website for Forms & Publications says "not found." -
I can access it fine from https://www.irs.gov/pub/irs-pdf/p974.pdf
I don't believe there's any other option on the alternate calculation in year of marriage. 1/2 the MFJ household income. Do be sure you're allocating any dependents (household size) as appropriate as that could also affect whether there is a repayment under the alternative calculation.Comment
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I looked at it about a year ago but I believe Reg. ยง1.36B-4(b)(5) gives the details for taxpayers who marry during the year. If memory serves me correctly, you use the alternative rule only if it gives you a better result than the general rule. Take a look - see if it helps.Comment
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Yes, using 50% of the Joint income is how the Alternative Calculation works, and it often does not reduce the repayment.
To invoke the repayment limitation, you can try (1) making contributions to IRA to reduce income below 400%, and/or (2) file as Married Filing Separately to reduce one or both incomes below 400%.Comment
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Thanks, I thought it looked like 1/2 earnings was the only possibility. Combined AGI or 1/2 doesn't make a difference in this case. Younger person so full cost was only 205/mo.Comment
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