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.