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Example of the Alternative Calculation for Year of Marriage: Premium Tax Credit (2025 IRS Guide)

This guide covers “Example of the Alternative Calculation for Year of Marriage” within premium tax credit. The following material presents the IRS treatment of this topic, including the qualifications, exceptions, and examples in the source section. Read the rules alongside the facts of your own situation before deciding what to report, deduct, or document.

Adapted from Publication 974 (2025), Premium Tax Credit (PTC), published by the Internal Revenue Service. This guide retains the source edition’s years, amounts, deadlines, and examples. It is guidance for that edition, not a statement that the same figures apply to every tax year.

Context for these rules

If you got married during 2025 and APTC was paid for an individual in your tax family, you may want to use the alternative calculation for year of marriage, an optional calculation that may reduce the amount of excess APTC you would have to repay under the general rules. Before you read this section, first read the instructions for line 9 in the Instructions for Form 8962. Complete Table 4 and, if required, Worksheet 3 in those instructions.

Example of the Alternative Calculation for Year of Marriage

The following example describes the alternative calculation for year of marriage for Paulette Oak and Quentin Cedar.

In 2025, Paulette and Quentin were single and maintained separate residences until they got married on July 18.

Paulette has no dependents. She was enrolled in a qualified health plan from January 1 through July 31. The Marketplace sent her a Form 1095-A showing her enrollment information for this 7-month period.

Quentin has two dependent children. He and his two children were enrolled in a qualified health plan from January 1 through July 31. The Marketplace sent him a Form 1095-A showing his enrollment information for this 7-month period.

From August 1 through December 31, 2025, Paulette, Quentin, and Quentin’s two dependent children were enrolled together in a different qualified health plan. The Marketplace sent them a Form 1095-A showing their enrollment information for this 5-month period.

Paulette and Quentin first complete lines 1 through 8 of Form 8962. Then, they read the instructions for line 9 and complete Table 4 and Worksheet 3 in the Form 8962 instructions and Worksheets I through V in this publication. Using the information in the worksheets and on Forms 1095-A, they complete lines 9 through 29, 35, and 36 of Form 8962.

Paulette and Quentin’s Form 8962, Lines 1 Through 11

Paulette and Quentin fill out Form 8962, lines 1 through 11, as follows.

Line 1.

They enter “4” because this is the number of individuals they included in their tax family.

Line 2a.

They enter $117,000, which they figured using Worksheet 1-1 in the Form 8962 instructions.

Line 2b.

They leave line 2b blank because neither of Quentin’s dependent children is required to file a federal income tax return.

Line 3.

They enter $117,000, the sum of lines 2a and 2b.

Line 4.

They enter $31,200 from Table 1-1 in the Form 8962 instructions. This is the federal poverty line for a family size of 4. They also check box c on line 4.

Line 5.

Using Worksheet 2 in the Form 8962 instructions, they divide line 3 ($117,000) by line 4 ($31,200) to get 375%.

Line 7.

They enter their applicable figure of 0.0788 from Table 2 in the Instructions for Form 8962. According to the fourth column of Table 2, 0.0788 is the applicable figure if the amount on line 5 is 375%.

Line 8a.

They multiply line 3 ($117,000) by line 7 (0.0788) and enter the result, $9,604.

Line 8b.

They divide line 8a ($9,220) by 12.0 and enter the result, $768.

Line 9.

Paulette and Quentin read the instructions for line 9, which explain that because they got married in 2025, they may be eligible to complete Part V to elect the alternative calculation for year of marriage. This calculation may reduce the amount of excess APTC they would otherwise have to repay.

The preliminary steps in determining whether they may be eligible are to complete Table 4 and Worksheet 3 in the Form 8962 instructions. Worksheet 3 would show that if Paulette and Quentin do not elect the alternative calculation, their total PTC will be $5,481 (line 13, column (e)). The excess APTC they will have to pay with their tax return is $2,942, which is the difference between $8,423 (APTC for the year on line 13, column (f)) and $5,481.

Because Paulette and Quentin checked “Yes” on line 14 of Worksheet 3, they complete Worksheets I through V to determine if the alternative calculation for year of marriage will benefit them. They complete Worksheets I through V before they check any of the boxes on line 9. As explained under Step 5 (Worksheet V), later, they qualify for the alternative calculation for year of marriage and check “Yes” on line 9.

Line 10.

As explained under Step 5 (Worksheet V), later, they check “No” on line 10.

Line 11.

Because Paulette and Quentin checked “No” on line 10, they skip line 11 and complete lines 12 through 23 to figure their monthly PTC.

Step 1 (Paulette’s Worksheet I)

Line 1.

They enter “1” as Paulette’s alternative family size because she can include only herself. She can’t include either of Quentin’s children in her alternative family size because neither of them lived with her for more than half of 2025 and she could not claim them as dependents.

Lines 2 through 9.

They complete these lines according to the instructions on the worksheet.

Step 2 (Paulette’s Worksheet II)

They complete Worksheet II only for January through July (the month Paulette and Quentin got married). They complete columns A and B using the amounts shown on Paulette’s Form 1095-A. They complete columns C and D according to the instructions shown on the worksheet.

Step 3 (Quentin’s Worksheet III)

Line 1.

They enter “3” as Quentin’s alternative family size consisting of Quentin and his two dependent children.

Lines 2 through 9.

They complete these lines according to the instructions on the worksheet.

Step 4 (Quentin’s Worksheet IV)

They complete Worksheet IV only for January through July (the month Paulette and Quentin got married). They complete columns A and B using the amounts shown on Quentin’s Form 1095-A. They complete columns C and D according to the instructions shown on the worksheet.

Step 5 (Worksheet V)

Quentin and Paulette complete Worksheet V only for the months they have entries in column E of Worksheets II and IV (January through July). They qualify for the alternative calculation for year of marriage because line 13, column A ($5,026), is more than line 13, column B ($3,486). Accordingly, they check “Yes” on line 14. They also check “Yes” on Form 8962, line 9; check “No” on line 10; and continue to Steps 6, 7, and 8 in this publication.

Step 6

Paulette and Quentin complete lines 35 and 36 as explained below.

Line 35.

  • Column (a): They enter “1,” Paulette’s alternative family size from Worksheet I, line 1.

  • Column (b): They enter $400, Paulette’s alternative monthly contribution amount from Worksheet I, line 7.

  • Column (c): They enter “01,” the alternative start month from Worksheet I, line 8.

  • Column (d): They enter “07,” the alternative stop month from Worksheet I, line 9.

Line 36.

  • Column (a): They enter “3,” Quentin’s alternative family size from Worksheet III, line 1.

  • Column (b): They enter $148, Quentin’s alternative monthly contribution amount from Worksheet III, line 7.

  • Column (c): They enter “01,” the alternative start month from Worksheet III, line 8.

  • Column (d): They enter “07,” the alternative stop month from Worksheet III, line 9.

Step 7

Paulette and Quentin complete lines 12 through 23 as explained below.

Column (a).

On lines 12 through 18, they enter $1,500 and $1,350 on lines 19 through 23, the monthly amounts from column (a) of Worksheet 3.

Column (b).

On lines 12 through 18, they enter $1,266 and $1,167 on lines 19 through 23, the monthly amounts from column (b) of Worksheet 3.

Column (c).

On lines 12 through 18, they enter $548, the monthly totals from Worksheet II, column C, and Worksheet IV, column C. On lines 19 through 23, they enter $768, the amount from Form 8962, line 8b.

Column (d).

They enter the difference between columns (c) and (b).

Column (e).

On lines 12 through 18, they enter $718, the monthly amounts from column A of Worksheet V. On lines 19 through 23, they enter $399, the smaller of column (a) or (d).

Column (f).

On lines 12 through 18, they enter $794 and $573 on lines 19 through 23, the monthly amounts from column (f) of Worksheet 3.

Step 8

Paulette and Quentin complete lines 24 through 29 as explained below.

Line 24.

They add the amounts on lines 12 through 23, column (e), and enter the total, $7,021. (As explained earlier under Line 9, their total PTC would be only $5,481 if they did not elect the alternative calculation.)

Line 25.

They add the amounts on lines 12 through 23, column (f), and enter the total, $8,423.

Line 26.

According to Step 8, they enter -0- because they elected the alternative calculation for year of marriage.

Line 27.

They subtract line 24 from line 25 and enter the difference, $1,402.

Line 28.

They enter the repayment limitation of $3,250 from Table 5 in the Form 8962 instructions.

Line 29.

They enter $1,402. This is the smaller of line 27 or line 28. They also enter $1,402 on Schedule 2 (Form 1040), line 1a. (As explained earlier under Line 9, the excess APTC they would have to pay would be $2,942 if they did not elect the alternative calculation.)

Using the guidance

Keep the documents that establish the dates, amounts, and circumstances described above. References to other chapters, forms, worksheets, or earlier and later sections refer to the linked IRS publication. Check the full publication and its updates before relying on a rule for a different tax year or a situation not addressed here.

Sources and further reading

The cited U.S. government text is in the public domain. Source accessed October 28, 2026. Fynoptic has organized this material for educational use and is independent of, and not endorsed by, the IRS.

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