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Old 03-03-2017, 11:37 AM
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Join Date: Mar 2017
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Question regarding marketplace insurance and marriage

I got married in July 2016. I was enrolled in market place insurance for all of 2016, and am now on my husbands insurance.

My income is low, and I had qualified for a tax credit. However I understand now that from July on, the income qualifications would be based on both our incomes. I didn't report the life change to marketplace (I didn't know I needed to do that since my insurance wasn't changing....my stupid fault). And now it's too late for me to report the marriage, and I was told it would be reconciled when we file taxes.

My question is...I'm sure I'll have to repay the credit from the 5 months of 2016 we were married....but do they take into account the 7 months that I was still single? Because at that time it wasn't "household" income it was just me. I'm concerned I'm going to have to pay back and entire year of credits when I was only married part of the year.

Thanks if anyone has any input!



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Old 03-04-2017, 07:51 AM
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Join Date: Oct 2010
Posts: 5,258
My question is...I'm sure I'll have to repay the credit from the 5 months of 2016 we were married....but do they take into account the 7 months that I was still single?====>Basically, you will be treated as having minimum essential coverage for a month as long as you have coverage for at least one day during that month.. Tax credits are based on household income, when you get married mid-year you'll count income before marriage and after marriage differently on the 8962 form Table 4. This part of the form can be a little daunting, so you need to get an Enrolled Agent ot a CPA doing taxes in your local area for professional tax assistance at the end of the year; in essence you claim your tax credit based on 1/2 combined income up until you get married, then you'd switch to a family plan when you get married, and then claim the tax credit from the month you got married forward based on that household income. You use the alternative calculation methods to calculate income monthly (instead of annually) due to being married. This may involve repaying tax credits but more likely if projections were made correctly and the Marketplace was notified at the correct times repayments will be non-existent or minimal.To get premium tax credits you need to share a coverage family and tax family. That means you need to be on the same plan, and since you are married in most instances you'll both need to file a joint return. For marriage that means you must switch to a family plan and file a joint return to claim tax credits.



Because at that time it wasn't "household" income it was just me. I'm concerned I'm going to have to pay back and entire year of credits when I was only married part of the year======>As mentioned above you need to check it by visiting heathcare.org; the IRS reminds newlyweds to add a health insurance review to their to-do list. This is particularly important if you receive premium assistance through advance payments of the premium tax credit through a Health Insurance Marketplace.As you get health insurance coverage through the Marketplace, you need to let the Marketplace know you got married. Informing the Marketplace about changes in circumstances, such as marriage allows the Marketplace to help make sure you have the right coverage for you and your family and adjust the amount of advance credit payments that the government sends to your health insurer.ALSO, reporting the change will help you avoid having too much or not enough premium assistance paid to reduce your monthly health insurance premiums. Getting too much premium assistance means you may owe additional money or get a smaller refund when you file your taxes. Getting too little could mean missing out on monthly premium assistance that you deserve. You should also check whether getting married affects your, your spouse?s eligibility for coverage through your employer or your spouse?s employer, because that will affect your eligibility for the premium tax credit. If you qualify for a Special Enrollment Period, November 1, 2016 ? January 31, 2017,to change plans, you have 60 days from the life event to enrollSince the 2017 Open Enrollment Period is over, you can now enroll in or change your Health Insurance Marketplace plan only if you have a life event that qualifies you for a Special Enrollment Period



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