If you file as Married Filing Separately and are not a victim of domestic abuse or spousal abandonment, then you are not allowed to take the Premium Tax Credit on your tax return. You must generally repay all APTC paid for your health insurance plan that covered only individuals in your tax family, and 1/2 of the amount paid for a policy that covered at least one individual in your spouse's tax family (if applicable).
If you ARE a victim of domestic abuse or spousal abandonment, you can file a return as Married Filing Separately and take the Premium Tax Credit.
You must meet all of the following situations:
- You are not living in the same abode/domicile as your spouse at the time you file your 2024 tax return
- You cannot file a joint return because you are a victim of spousal abandonment or domestic abuse/violence.
- You certify that you are a victim of domestic abuse or spousal abandonment on Form 8962.
- You do not meet the 3-year limit for Exception 2 (victim of domestic abuse or spousal abandonment).
Domestic abuse
Domestic abuse is any type of sexual, physical, psychological, or emotional abuse, which includes any attempt to humiliate, isolate, control and intimidate, or to undermine the victim's ability to reason independently. When determining if and individual is abused all the circumstances and facts are considered, including the victim’s spouse use of alcohol or drug abuse. Contingent on the circumstance or the facts of the case, abuse of the victim’s family members or children while living in the household may establish abuse of the victim.
Spousal abandonment
If the taxpayer is unable to locate his or her spouse after proper diligence and all facts and circumstances have been taken into consideration, a taxpayer is considered a victim of spousal abandonment for the tax year.
Three-year limit for Exception 2
The PTC cannot be claimed using this exception for more than 3 consecutive years.