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Alternative Marriage Calculation on Form 8962 is Not Activating and Line 9 is Marked No

Intuit

Alternative Marriage Calculation on Form 8962 is Not Activating and Line 9 is Marked No

Description

Why isn't Form 8962, Part 5 generating?

Why isn't Form 8962, line 9 checking 'Yes'?

Solution Description

  • Form 8962, Part 5 will not generate if the Alternative Marriage Worksheets do not reduce the excess APTC that must be repaid.
  • Form 8962, line 9 will not check 'Yes' if Part 5 is blank and Part 4 is not being complete.
  • The Alternative Marriage Calculation is not used if one half of the household income is greater than 400% of the Federal Poverty Income Limit on line 2 of Worksheet I and Worksheet III.

Per the 8962, Part 5 Worksheet V instructions from Pub 974

"Is line 13, column A, more than line 13, column B?

No. The alternative calculation does not reduce your excess APTC. Leave Form 8962, Part 5, blank.

  • If you did not complete Part 4 of Form 8962, check the "No" box on line 9 and continue to Form 8962, line 10. If you are required to use lines 12 through 23 of Form 8962, enter the amounts from lines 1 through 12 of Worksheet 2 in the Form 8962 instructions on the lines for the corresponding months and columns on Form 8962.
  • If you complete Part 4 of Form 8962, check the "No" box on line 10. Enter the amounts from line 1 though 12 of Worksheet 2 in the Form 8962 instructions on the lines for the corresponding months and columns on Form 8962, lines 12 through 23."

Example:

Taxpayer and Spouse household income was $80,000, they were married in September of 2014 and the Spouse has excess APTC.

Manually completing the Worksheet III, IV and V, for the spouse:

Worksheet III:

  1. Alternative family size = 1
  2. Household income (Form 8962, line 3 = 80000 divided by 2) = 40000
  3. Alternative federal poverty line for line 1 alt family size = 11490
  4. Alt household income as a percentage of federal poverty line = 40000 / 11490 = 348
  5. Alternative applicable figure from table 2 = 0.0950
  6. Multiply line 2 by line 5 = 40000 * 0.0950 = 3800
  7. Alt monthly contribution: Divide line 6 by 12 = 3800 / 12 = 317
  8. Alternative start month = 1
  9. Alternative stop month = 9

Worksheet IV:

Since all months are the same, we only need to complete for the month of January (Feb-December will all be the same):

  • Column A Form 1095A, column A = 250
  • Column B Form 1095-A, column B = 225
  • Column C Worksheet III, line 7 = 317
  • Column D Subtract col C from col B = 0
  • Column E Smaller of column A or column D = 0

Worksheet V:

Column A.  Complete column A below ONLY for the months you have entries in column E of Worksheet II and / or Worksheet IV.  Leave column A blank for all other months.

There is no amount in column E of Worksheet IV so column A of Worksheet V will be blank.

Column B. Complete column B for any month you have an entry in Column A.

There are no entries in column A, so column B will also be blank.

Line 14.  Is line 13, Column A more than line 13, column B?

No ? The alternative calculation does not reduce your excess APTC.  Leave Form 8962, Part 5 blank.

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