Re: married filing separate and the marketplace insurance policy

TA3

I have a taxpayer couple that he is on medicare and she has a marketplace plan. Both their incomes cause a large tax bill due to the marketplace plan. Since the marketplace plan is for her, can I do married filing separate for them giving her the marketplace plan, or is that not allowed?

Thanks

sjrcpa

Married couples may always choose to fie MFS.

The more I know the more I don’t know.

TA3

I get that they can file separately. Just wanted to make sure that there was nothing odd about the 1095A insurance that would allow it to somehow circumvent that and be taxable to both taxpayer and spouse and put me right back where I was.

TA3

Thanks. I get that they can file separately. Just wanted to make sure that there was nothing odd about the 1095A insurance that would allow it to somehow circumvent that and be taxable to both taxpayer and spouse and put me right back where I was.

rbynaker

Be aware that filing separately may increase his Medicare premiums next year. So they may be paying less to Uncle Sam now only to pay more to Aunt IRMAA later.

TA3

Thanks! I never thought about or was aware of that. Or where could I information on that?

Thanks again

rbynaker

Google. Here's one hit but there are many more. Depends on the client's income level.

https://www.nerdwallet.com/article/insurance/medicare/what-is-the-medicare-irmaa

TA3

Thanks! Not a great deal of income, but I will check it out.