USA Marriage/ Individual Shared Responsibility

[nk1402]

Hi all,

I'm about to get married, and my future spouse does not have health insurance coverage, being exemption because plans are considered unaffordable. How will us getting married affect his ability to claim this exemption? Would he still be exempt if we file our taxes separately? If not, would I have to pay a penalty, and would that be only for the months we were married this year or for the entire year?

Thanks!

 

[Drmdcpa]

Are you in a community property state? That could make a difference. It also depends on total family income.

The proper filing of a tax return should take into account the change in marital status during the year. But you better make sure to also report the change to the exchange so they can make adjustments if necessary. Failing to do so could blindside you if he no longer qualifies after the marriage but continues to recieve the benefits.

 

[nk1402]

We are not in a community property state. Currently his total income is about $15k, while mine is $65k. I have health insurance, but he qualifies for an exemption since his income is low. After marriage, he will be covered under on my health insurance plan.

So I'm wondering if we would have to pay a penalty for him not being covered before our marriage, which seems strange, or if we can avoid that by filing separately.

 

[Drmdcpa]

There should be no need to file separate. A properly prepared return will take into account the change is marital status when calculating the Obamatax.

However it sounds like it makes sense to file separately since you have disparate income and live in a common law state.

Married filing joint will effectively tax his income at your rate. Ideally you would prepare the returns as MFJ and MFS to determine what the lowest tax is. I can reasonably guess it is MFS.

In either case, the Obamatax will not be assessed because he did not have coverage prior to change in marital status.