Client wants Obamacare but wants to file taxes separate from wife

[InsurancePimp_]

I enrolled client this past enrollment after he told me that he and his wife were going to do taxes together

come yesterday he asks me that he wants to do his taxes separate from the wife.

he is asking me if he can keep the insurance?

I told him there would be issues that I don’t even know

my question is, what are the repercussions of him filing taxes separate?

his taxes guys says he can. I say no

Now what?

 

[Yagents]

No free ride. They would owe 100% of the tax credit back if not filing jointly. Meaning, they would pay full price now or later.

If that were the case, every stay at home parent and kids would get obamacare for free. With high income spouse paying full price

• Who’s included in your household
• you’re married and will file separately for the year you want coverage: You can enroll in a Marketplace plan together but you’re not eligible for a premium tax credit or other savings, and you may have to complete a separate application.

 

[InsurancePimp_]

No free ride. They would owe 100% of the tax credit back if not filing jointly. Meaning, they would pay full price now or later.

If that were the case, every stay at home parent and kids would get obamacare for free. With high income spouse paying full price

• Who’s included in your household
• you’re married and will file separately for the year you want coverage: You can enroll in a Marketplace plan together but you’re not eligible for a premium tax credit or other savings, and you may have to complete a separate application.

thanks, these people always have a family member that does ‘taxes’ and think they know what they are talking about

 

[David Taylor Jr]

I enrolled client this past enrollment after he told me that he and his wife were going to do taxes together

come yesterday he asks me that he wants to do his taxes separate from the wife.

he is asking me if he can keep the insurance?

I told him there would be issues that I don’t even know

my question is, what are the repercussions of him filing taxes separate?

his taxes guys says he can. I say no

Now what?

The wrong question is being asked. The question is not, can he keep the insurance? He can. The question is can they keep the tax credit? The answer is no.

 

[BibH]

I ran into that same situation in dec . I called aca to confirm and to get the credit you must file joint if married.

 

[InsuranceGuy29]

He can most definitely keep the insurance, but he most definitely CANNOT keep the tax credit.

When you’re married, you either file jointly, and get the tax credit (if eligible through income), or file separately and not qualify for it. It’s very black and white.

You might get the “But, but, we don’t live together and hate each other,” or “But, But, we get more tax breaks filing separately.” Doesn’t matter.

 

[InsurancePimp_]

Thanks guy, client will listen to me and not his tax guy on this

 

[bluediamond]

Who’s included in your household

• If you’re married and plan to file as head of household for the year you want coverage: You can say you’re "unmarried" on your Marketplace application. You’re then eligible for a premium tax credit and other savings if you qualify based on your income and other factors. See IRS rules for filing as head of household.

May be tough to do but it is possible.