Healthcare Marketplace Tax Credit

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cdcarter92
cdcarter92 Member Posts: 1 Newcomer

Hello!

I had health insurance through the marketplace for March and April for 2023, and received a tax credit based on my income. In May I started insurance under my fiances plan so I didn't need it through the marketplace anymore, so I canceled it. In July we got married. I was starting to file - married filing separately. It said I owed the tax credit from the health insurance marketplace. I was not married on March or April when I received that tax credit though. We are filing separately because on my federal students loans I put that we were filing separately so they would base my payment off just my income and not ours together.

Answers

  • LaurenW
    LaurenW FreeTaxUSA Agent Posts: 16
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    Hello!

    Unfortunately, the IRS does have a requirement that you are ineligible for the Premium Tax Credit if you are filing married separately (Q9 under the "Eligibility" section on the link below). It's hard to know exactly the amounts without seeing your actual worksheet, but it sounds like the IRS will require you pay the credit back since your filing status at the end of the year was MFS. However, there is an option if you file jointly that you can let them know how many months you were married and they can calculate the repayment that way. It would be up to you what you would want to do, considering the situation with your student loans. Let us know if you have any other questions!

    https://www.irs.gov/affordable-care-act/individuals-and-families/questions-and-answers-on-the-premium-tax-credit