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 plan that covered individuals in your family, and 1/2 of the amount paid for a policy that covered at least one individual in your family.
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 2020 tax return
- You are cannot file a joint return because you are a victim of spousal abandonment or domestic abuse/violence.
- You verify that you are a victim of domestic abuse or spousal abandonment on Form 8962.
- You did not take the PTC using this exception in a prior year.
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.
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.