Married Filing Separately w/marketplace insurance

Forum|Forum|1 year ago
March 14, 2025
2 replies
15 views

My client wants to file Married Filing Separately this year, in the past she has filed jointly. It always ended up with her covering his self-employment tax shortfall. The issue I am struggling with is that they took out a joint marketplace insurance contract last year with advanced ptc.

How do I handle the insurance portion filing MFS?

Thank you

ProSeries Basic

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Best answer by TaxGuyBill

Enter the 1095-A on each return. Go down to the "allocation" section and allocate 50% to each person (assuming both were covered on the 1095-A, or there is a covered dependent on the non-covered person's tax return).

Filing as MFS will disqualify the credit (except for domestic abuse or abandonment), so they will need to repay some (or all) of the Advance credit.

T

TaxGuyBillAnswer

Level 15

Enter the 1095-A on each return. Go down to the "allocation" section and allocate 50% to each person (assuming both were covered on the 1095-A, or there is a covered dependent on the non-covered person's tax return).

Filing as MFS will disqualify the credit (except for domestic abuse or abandonment), so they will need to repay some (or all) of the Advance credit.

Y

YLCAuthor

Level 5

Thank you, extremely helpul!

qbteachmt

Level 15

"with her covering his self-employment tax shortfall"

Uh, what? Any payroll withholding is part of "their" tax payments. If they are not withholding enough + not also making estimates, then there is shortfall for Taxes, but it's not exclusive to any one tax type. And if there is a refund, is that only hers?

MFS is not the way to resolve a fight over whose money in a marriage is supposed to pay for which things.

And it seems they need some help with prepayment planning.

Don't yell at us; we're volunteers

Y

YLCAuthor

Level 5

I know everything to which you responded, but she can't make her husband make est taxes if he refuses, so she is sick of giving up her refund to cover his side. I've explained all of the pitfalls of MFS but that is her choice, not mine.

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