Advanced premium tax credit-taypayer married in 2025

[mcd1231]

My client married in August 2025.  He married his son's mother.  She had individual health insurance from the Marketplace.  When I file their joint return for 2025 I indicate that they married in month 8 but that doesn't change the amount of the APTC that needs to be repaid, $4068.That doesn't seem right.

I did MFS for both of them and the APTC is only $1950 for her.  Can I file MFS for them even though she is not an abandoned spouse or a victim of domestic violence?  And do I have to do anything about her Marketplace insurance on his return?  

I have read and reread the instructions for 8962 and am getting more confused every time I pick them up.

Thank you in advance for any help.

[sjrcpa]

Any married couple can decide to file MFS or MFJ.

[TaxGuyBill]

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@mcd1231 wrote:

When I file their joint return for 2025 I indicate that they married in month 8 but that doesn't change the amount of the APTC that needs to be repaid, 

I did MFS for both of them and the APTC is only $1950 for her.  Can I file MFS for them even though she is not an abandoned spouse or a victim of domestic violence?  And do I have to do anything about her Marketplace insurance on his return?  

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Unfortunately, more often than not, that Alternative Calculation in the Year of Marriage does not reduce the repayment.

Yes, she can file as MFS.  That will disqualify the Premium Tax Credit, but her lower income is seeming to lower the repayment.  However, watch out for other potential negative aspects of filing Separately.  Even though the repayment of the Premium Tax Credit may be lower, in many cases the overall combined tax may be higher due to loss of certain deductions or credits and/or resulting in higher tax rates.