ACA Excess Advanced Premium Repayment 1040 line 46

[John of PA]

I am doing a MFS tax return (1095-A Health Insurance Exchange) that is resulting in an Excess Advance Premium Repayment of 600 on line 46, 1040. The tax is otherwise zero so the taxpayer owes 600. I was just informed by the other tax preparer (doing the other spouses MFS return) that his ACA allocation he used was 50%. So I put a 50% allocation on the return I am doing and the taxpayer still owes the 600. I was hoping the 50% allocation would reduce the amount due to 300. I’m not sure if I am having an issue with my tax software, Drake, or if this is just the nature of how the repayment works. The question is: Does a 50% allocation reduce the Excess Advance Premium Repayment amount on line 46 by 50%? Any thoughts would be helpful.
Tullio Falini Jr.

[kathyc2]

See instructions for 8962, page 14. The payback for less than 200% of FPL is $300 for filing status of single, any other (which would include MFS) filing status $600.

[TaxGuyBill]

The 50% would reduce the calculations for the FULL repayment (Line 27 on Form 8962), but does not reduce the repayment 'limit' for the low income taxpayers (Line 28 of Form 8962).

[John of PA]

Aca

Thank you Kathy and TaxGuy, that was very helpful.