Understanding the Alternative Marriage Calculation for ACA Health Insurance
This blog post will explain the alternative marriage calculation for ACA health insurance and how it can benefit you when you file your taxes. The alternative marriage calculation allows you to use a different income calculation when determining your eligibility and premium for ACA health insurance.
This can be beneficial if your income significantly changed during the year of marriage, such as if one spouse lost their job.
How the Alternative Marriage Calculation Works
The alternative marriage calculation is available to married couples who file a joint tax return and meet the following criteria:
One spouse was enrolled in ACA health insurance for at least four months before the date of marriage.
The other spouse had no other health insurance coverage during the year.
The couple’s combined income for the year is less than 400% of the federal poverty level.
If you meet these criteria, you can use the alternative marriage calculation to determine your eligibility and premium for ACA health insurance. To do this, you will need to attach Form 8962 to your tax return.
Benefits of the Alternative Marriage Calculation
The alternative marriage calculation can provide several benefits, including:
You may be eligible for a lower premium.
You may be eligible for a larger tax credit.
You may be able to avoid paying a penalty for not having health insurance.
How to Use the Alternative Marriage Calculation
To use the alternative marriage calculation, you will need to:
Get a copy of Form 8962 from the IRS website.
Complete Form 8962.
Attach Form 8962 to your tax return.
You can find more information about the alternative marriage calculation on the IRS website.
Seeking Professional Help
If you are unsure how to use the alternative marriage calculation, you may want to seek professional help. A tax accountant can help you determine if you are eligible for the alternative marriage calculation and can assist you in completing Form 8962.
Conclusion
The alternative marriage calculation can be a valuable tool for married couples who want to save money on health insurance. If you meet the criteria for the alternative marriage calculation, you should consider using it when you file your taxes.
Question? or Need a Free Quote?
Contact Us
Reach out to us for free expert insurance advice and solutions. We will help you solve ACA (Obamacare) related questions and problems. Will contact you within 24 hours of receiving your message.