Question

1095A

Forum|Forum|5 years ago
March 5, 2021
1 reply
0 views

Why do I have to pay back the health insurance discount after getting married? $6,165.00

My spouse had minimum income while she was in the health marketplace, but after we were married I was able to add her to my employer provided health care plan. She canceled the marketplace healthcare once she was covered under my policy. Why should we have to pay back the entire year? Seems like I'm being penalized for getting married.

B

BillM223

Yes, the amount of PTC (Premium Tax Credit) that you must repay depends on your annual income, and it's not figured month by month as you might expect.

So if your annual income rises to 400% or 401% of the Federal Poverty Level - which it sounds like you did - then all of the PTC that was advanced to your spouse would have to be paid back, because the two of you - based on your annual income - did not qualify for any PTC.

See the instructions for lines 24 to 29 on form 8962.

You can see the Federal Poverty Levels here. Note that for tax year 2020, we use the 2019 numbers (because the federal poverty levels are needed at the start of 2020).

It's not the news you wanted to hear, but I think that is what happened to you.

Congrats, by the way, on your wedding.

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