Generally, no. If you file your federal tax return using the Married Filing Separately (MFS) filing status, you aren't eligible to claim the Premium Tax Credit (PTC).
If you received Advance Premium Tax Credit (APTC) payments during the year, you may have to repay some or all of those advance payments when you file your tax return.
However, there is an important exception for certain taxpayers who are victims of domestic abuse or spousal abandonment.
Exception for Victims of Domestic Abuse or Spousal Abandonment
You may still qualify for the Premium Tax Credit while filing as Married Filing Separately if all of the following conditions are met:
- You are unable to file a joint return because of domestic abuse or spousal abandonment.
- You and your spouse are not living in the same household when you file your tax return.
- You certify on Form 8962, Premium Tax Credit, that you are a victim of domestic abuse or spousal abandonment.
- You have not previously claimed this exception for three consecutive years.
If you meet these requirements, you may be able to claim the Premium Tax Credit and reconcile any advance payments received through the Marketplace.
What Counts as Domestic Abuse?
For Premium Tax Credit purposes, domestic abuse may include:
- Physical abuse
- Sexual abuse
- Psychological or emotional abuse
- Threats, intimidation, or coercion
- Attempts to control, isolate, humiliate, or undermine a person's ability to act independently
When determining whether domestic abuse occurred, all relevant facts and circumstances are considered. In some situations, abuse directed toward a spouse's children or other family members living in the household may also be considered.
What Is Spousal Abandonment?
You may be considered a victim of spousal abandonment if you cannot locate your spouse after exercising reasonable diligence and considering all relevant facts and circumstances.
Repayment of Advance Premium Tax Credit
If you file as Married Filing Separately and do not qualify for the domestic abuse or spousal abandonment exception:
- You generally cannot claim the Premium Tax Credit.
- You may be required to repay all Advance Premium Tax Credit payments made for coverage that applied only to individuals in your tax family.
- If the Marketplace policy covered someone in both your tax family and your spouse's tax family, you may have to repay a portion of the advance credit based on the allocation rules reported on Form 8962.
The tax software will calculate any required repayment when you enter your Form 1095-A information.
Three-Year Limit on the Exception
The domestic abuse or spousal abandonment exception is intended to provide temporary relief. You generally cannot use this exception for more than three consecutive tax years.
If you've already claimed the exception for the prior three consecutive years, you won't be eligible to claim the Premium Tax Credit under this exception for the current tax year.
How to Report the Premium Tax Credit in the Program
If you received Form 1095-A, Health Insurance Marketplace Statement:
- Go to Health Insurance in the program.
- Answer Yes when asked whether you purchased insurance through HealthCare.gov or a state Marketplace.
- Enter the information from Form 1095-A exactly as shown.
- Answer the questions regarding your filing status and Marketplace coverage.
The program will complete Form 8962 and determine whether:
- You're eligible for the Premium Tax Credit,
- You qualify for the domestic abuse or spousal abandonment exception, or
- You must repay some or all Advance Premium Tax Credit payments received during the year.
Key Takeaway
Most taxpayers who file Married Filing Separately cannot claim the Premium Tax Credit. However, taxpayers who are victims of domestic abuse or spousal abandonment may qualify for a special exception that allows them to claim the credit and reconcile Marketplace benefits on Form 8962.
Important Note
You will not be able to e-file this return. You will need to print and mail this return and include a written statement that you are a victim of domestic abuse or spousal abandonment.