How to avoid losing the premium tax credit

[jessicaphillipsc]

My client got married mid year and was previously eligile for the PTC. They are over the 401% poverty line and if I take half of their income they are still over $75,900. My understanding is that this has to be paid back even though they qualified for the credit on their own income and before they were married. Is this correct?

[Just-Lisa-Now-]

You understand correctly....is Married Filing Separately an option?

[jessicaphillipsc]

My understanding is that MFS eliminates the credit as well.

[Just-Lisa-Now-]

MFS may limit the payback amount.... you don't have any credit to get....you're trying to lower the amount they have to payback now.

[abctax55 · Accepted solution]

Lower the income by an HSA and/or retirement plan contributions if possible?