MFS and Premium Tax Credit

[Bjay]

I have clients who owe a large amount of their premium tax credit due to income not being estimated correctly. If they file MFS that can be limited. My question is, if they file MFS for 2018, can they still receive the premium tax credit on a joint policy for 2019?

[TaxGuyBill]

Yes, how they file in 2018 does not affect their eligibility for 2019.

It is POSSIBLE that the Marketplace may be picky and hesitate to the give the Advance credit when they apply for insurance for 2020, but I would guess that won't be a problem either.

[nwtaxlady]

I have clients who owe a large amount of their premium tax credit due to income not being estimated correctly. If they file MFS that can be limited. My question is, if they file MFS for 2018, can they still receive the premium tax credit on a joint policy for 2019?

Look at the Form 8962 instructions. I don't think you can file MFS for 2018 unless you are a victim of domestic abuse. Need to read ALL the instructions.

[TaxGuyBill]

Look at the Form 8962 instructions. I don't think you can file MFS for 2018 unless you are a victim of domestic abuse. Need to read ALL the instructions.

Filing Separately will disqualify the Premium Tax Credit, but the repayment limitations still apply.