The Internal Revenue Service updated its
Among the areas updated Thursday with new information are FAQs about the basics of the tax credit; how to get advance payments of the Premium Tax Credit; and what happens if a taxpayer’s income, family size or other circumstances changes during the year.
The latest guidance also updates information about who is eligible for the Premium Tax Credit and what are the income limits and household income allowed. The new FAQs also deal with the question, “Am I definitely ineligible for the premium tax credit if I’m married but I file my tax return using the filing status married filing separately?”
The answer is no. “If you are married and you file your tax return using the filing status married filing separately, you may be eligible for the premium tax credit if you meet the criteria in section 1.36B-2(b)(2) of the Income Tax Regulations, which allows certain victims of domestic abuse and spousal abandonment to claim the premium tax credit using the married filing separately filing status. You can claim this relief from the joint filing requirement if you meet all of the following criteria:
- You are living apart from your spouse at the time you file your tax return.
- You are unable to file a joint return because you are a victim of domestic abuse or spousal abandonment.
- You certify on your return that you are a victim of domestic abuse or spousal abandonment.”
Other new information has been added on reporting, claiming and reconciling the tax credits, suspending repayments of excess advance payments of the Premium Tax Credit for tax year 2020, and on how to deal with unemployment compensation for 2020 and 2021, including what happens if a dependent claimed unemployment compensation last year.
The guidance comes after the Biden administration made a greater effort to sign up Americans for the Affordable Care Act, which was passed in 2010 when Biden served as vice president.
The Department of Health and Human Services announced that more than 4.6 million people had newly signed up by Dec. 15 of last year, and 13.6 million people total, with a month to go before open enrollment ended.
