Christian Posted February 10, 2015 Report Share Posted February 10, 2015 (edited) A couple for whom I have worked for years picked last year to divorce. They had applied for health insurance through our federal exchange and obtained coverage beginning 3/1/14. The Form 1095-A provided shows premium credits in excess of $9,000. The problem is the credits are based on both spouses. The former beloved wife has trotted off and filed as a single person for 2014 using none of the credits. Now, faced with filing the husband's return I am scratching my head as how to divide these credits or do I just credit them to his return. Anyone got a clue ? The husband paid the premiums due above the credits amount. Edited February 10, 2015 by Christian Quote Link to comment Share on other sites More sharing options...
jklcpa Posted February 10, 2015 Report Share Posted February 10, 2015 See the snip from the instructions in 8965, page 12 I've copied below. Bolding is mine on that last sentence. I'd make sure that the client understands that they can allocate using any percentage they agree on. If they agree, your client will use 100% of the subsidy in calculating his return. If they don't agree, then your client is limited to 50%: Taxpayers divorced or legally separated in 2014. You and your former spouse must allocate policy amounts on your separate returns to figure your PTC if both of the following apply.You were married at some point during 2014 but were no longer married to that spouse at the end of 2014.You and your former spouse were enrolled in the same qualified health plan, or you or an individual in your tax family (as shown on your tax return) was enrolled in the same policy as your former spouse or as an individual in your former spouse's tax family at any time during 2014. You will allocate with your former spouse a percentage of the total enrollment premiums, the premiums for the applicable SLCSP, and APTC for coverage under the plan during the months you were married. You will find these amounts on your Form(s) 1095-A, Part III, columns A, B, and C, respectively. You and your former spouse can allocate these amounts using any percentage you agree on between zero and one hundred percent, but you must allocate all amounts using the same percentage. If you do not agree on a percentage, you and your former spouse must allocate 50% of each of these amounts to you and 50% of each to your former spouse. Quote Link to comment Share on other sites More sharing options...
Christian Posted February 11, 2015 Author Report Share Posted February 11, 2015 Many thanks Judy. Since she chose not to use any of the credits I'll give them to him. Every tax season I thank my lucky star for this board. 2 Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.