Taxpayers Divorced or Legally Separated in 2024
If you and your former spouse were married at any point during 2024 but were no longer married by the end of the year, and for one or more months during your marriage, you were enrolled in the same qualified health plan, you need to allocate policy amounts on your separate tax returns to figure your Premium Tax Credit (PTC) and reconcile it with your Advance Premium Tax Credit (APTC).
Steps to Allocate Policy Amounts:
- Identify the Period of Coverage: Determine the months during which you and your former spouse were married and enrolled in the same health plan.
- Locate Policy Amounts: Find the total enrollment premiums, applicable Second Lowest Cost Silver Plan (SLCSP) premium, and APTC on your Form(s) 1095-A, Part III, columns A, B, and C.
- Agree on Allocation Percentage: You and your former spouse can agree to allocate any percentage (from 0% to 100%) of these amounts to one of you, with the remainder allocated to the other. All three amounts must be allocated using the same percentage. If you cannot agree on a percentage, you must allocate 50% of each amount to you and 50% to your former spouse.
Agreed Allocation Example
Mike and Donna were married at the beginning of 2024 and divorced in July. They have three children, Ben, Grace, and Max. Mike enrolled the children in a qualified health plan starting in January. After the divorce, the children enrolled in government-sponsored health coverage effective August 1. Mike and Donna agree to allocate the policy amounts 33% to Donna and 67% to Mike for the months they were married.
Donna's Form 8962: She enters Mike's SSN in column (b) and "0.33" in columns (e), (f), and (g).
Mike's Form 8962: He enters Donna’s SSN in column (b) and "0.67" in columns (e), (f), and (g).
Both enter "01" in column (c) and "07" in column (d).
Example 2: Default Allocation
Cannot Agree on Allocation
If Mike and Donna cannot agree on an allocation percentage, they must allocate 50% of the enrollment premiums, applicable SLCSP premium, and APTC to each taxpayer.
Forms 8962: Both Mike and Donna enter "0.50" in columns (e), (f), and (g).
By following these steps, you can ensure that the policy amounts are correctly allocated between you and your former spouse for the months you were married.