I have a couple who were separated for 6 months. For the 6 months 6 had to get marketplace insurance. They are back together she stopped the insurance and was put back on her husband's insurance. When I go through the 8962, She has to pay it all back since they are looking at both their incomes and not hers for when they were separated. Is there a way to not have her pay it all back?
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The wonders of Obamacare and Form 1095-A.
A marketplace policy comes with strings attached, and you have encountered one of them. -
If she files as Married Filing Separately, it MIGHT limit the amount she needs to repay. But depending on their circumstances, MFS could result in more tax overall.
If she (or they, if they file Jointly) is close to the 400%, 300% or 200% mark for the Federal Poverty Level AND are self-employed AND filed an extension, contributing to a retirement account for 2025 could put the income below the 400%/300%/200% and lower the repayment (a Traditional IRA would do the same thing, if it was before the un-extended due date).Comment
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