How to report shared policy allocation for MFS on Form 8962 (Marketplace insurance)?

If you and your spouse were married at the end of 2026 and are filing separate tax returns, you may need to allocate Marketplace health insurance policy amounts on Form 8962, Premium Tax Credit (PTC).

This typically applies when you, your spouse, or someone in either tax family was covered under the same Marketplace policy during the year.

When Is Shared Policy Allocation Required?

You must allocate policy amounts equally (50% to each spouse) if all of the following are true:

1. You were married on December 31, 2026.
2. You are filing separate tax returns.
3. You or someone in your tax family was enrolled in the same Marketplace policy as your spouse or someone in your spouse's tax family at any point during 2026.

Premium Tax Credit and Married Filing Separately

In most cases, taxpayers who file as Married Filing Separately (MFS) are not eligible for the Premium Tax Credit.

However, you may still qualify if you meet one of these exceptions:

• Exception 1: You qualify to file as Single or Head of Household.
• Exception 2: You are filing as Married Filing Separately because of domestic abuse or spousal abandonment.

How to Enter a Shared Policy Allocation

If your situation requires a shared allocation, follow these steps in the software:

1. Select the option to allocate policy amounts.
2. Enter your spouse's Social Security number.
3. Indicate which months the allocation applies to.
4. Enter 50% in each of these allocation fields:
   • Premium
   • Second Lowest Cost Silver Plan (SLCSP)
   • Advance Payment of the Premium Tax Credit (APTC)
5. Continue to the next screen.
6. Answer No to the question:

"Do all Forms 1095-A include coverage for January through December, with no changes in monthly amounts? (Remember, if family members are covered under different Marketplace plans, you'll have more than one Form 1095-A.)"

1. For each applicable month, multiply the amounts shown on Form 1095-A by your allocation percentage (50%).
2. Enter the adjusted monthly amounts into the software.

Important

Do not enter your own Social Security number in the allocation section. Enter only the other person's SSN (typically your spouse's).

Example

Suppose your Form 1095-A shows the following amounts for January:

• Monthly Premium: $1,000
• SLCSP: $900
• APTC: $700

With a 50% allocation, you would enter:

• Premium: $500
• SLCSP: $450
• APTC: $350

Apply the same calculation to each month being allocated.

Key Takeaway

If you're filing Married Filing Separately and you shared a Marketplace policy with your spouse, you'll generally need to allocate the policy amounts 50/50 on Form 8962. Be sure to enter only your spouse's SSN in the allocation section and use the allocated amounts from Form 1095-A when completing your return. This helps ensure the Marketplace coverage is reported correctly and avoids processing delays.

Additional Information

Please see these related articles:

• Premium Tax Credit (Form 8962)
• How do I enter my 1095-A
• I am dependent on another person's return. How do I answer the health insurance question?
• How do I report Shared Allocation Policy amounts when I am divorced