The marriage penalty

First, he discovered that the “write-off” portion of his credit settlement was counted as “income,” although he had actually received none. According to PPACA, Eddie’s increased adjusted gross income (AGI) meant he would have to pay “back” (a term Eddie could not understand, since he had never received that money, either) $1,100 of premium tax credits advanced on his behalf.

The issue that hurt the most, however, was Jan’s Social Security benefit, which totaled more than $18,000. Although that money is not subject to federal income tax, PPACA counts it as income in calculating premium tax credit eligibility. Added to everything else, it just about eliminated all of Eddie’s credits.

It took several trips through the instructions for Form 8962 and IRS Publication 974 to discover and implement the “Alternative Calculation for Year of Marriage,” which effectively nullified the penalty for 2014.

However, Eddie still had to return $1,100 of his 2014 advance premium tax credit, and now pays and additional $100 per month for his insurance plan.

That’s the penalty for marrying a Social Security beneficiary on Medicare.

See also: View: Oregon shows Obamacare remaking insurance market