Manzolillo v. Comm’r, T.C. Memo. 2022-107 | October 24, 2022 | Kerrigan, J. | Dkt. No. 25481-16
Summary: This case regards a deficiency of $4,750 for 2015 based on advance premium tax credit (APTC) benefits that were applied against George Manzolillo and Lucy Manzolillo’s (Petitioners) monthly health insurance premium. Before their marriage on May 16, 2015, Petitioners separately enrolled in health insurance for taxable year 2015 through Aetna Life Insurance Company, which they purchased through the Health Insurance Marketplace. Petitioner husband elected to receive APTC payments of $640 per month for 12 months for a total annual credit of $7,680. Petitioner wife similarly elected to receive APTC payments of $90 for three months—January 1 to March 31, 2015— totaling $270 for the year. Petitioners received a combined APTC benefit of $7,950 in 2015.
This amount was paid directly to Petitioners’ insurance company and applied to the cost of their 2015 health insurance premiums. Petitioners timely filed a joint income tax return. They attached to their return Form 8962, Premium Tax Credit, which is used to reconcile the amount of APTC benefit received with the amount the taxpayer was entitled to receive. They reported modified adjusted gross income (MAGI) and claimed a $4,515 PTC for 2015. They claimed erroneously that $3,200 had been paid on their behalf; it was in fact $7,950. Petitioners elected the alternative calculation for year of marriage but failed to complete Part V of Form 8962. After submission of additional information to the IRS, the IRS issued Petitioners a previously frozen refund of $4,187 plus interest.
Recent Comments