Updated November 5, 2026. Quick answer: Worksheet E in Publication 974 (2025) is for a married taxpayer who is not filing a joint return and has to share a marketplace health plan’s policy amounts with the spouse and with a third taxpayer. It first gives each spouse half of what the third taxpayer leaves, then, only if the Form 8962 box is checked or Exception 1 applies, figures the applicable SLCSP premium to include.
When Worksheet E applies
The publication says “Use this allocation method if you are married but not filing a joint return and you must allocate policy amounts with your spouse and with a taxpayer who is including in their tax family an individual enrolled in a qualified health plan with members of your and your spouse’s tax families.” The case is a couple who enrolled the family together, then file apart, with a child now claimed by someone else. The third taxpayer uses Worksheet F.
The 50% split between the spouses is built into the sheet: “Under this method, you must first allocate 50% each of enrollment premiums and APTC to yourself and your spouse.” “Line 4 of Worksheet E accomplishes this 50% allocation.”
Step 1 and Step 2
Step 1 is the SLCSP premium: “Determine the applicable SLCSP premium for your coverage family.” The twist is that “your coverage family or your spouse’s coverage family (but not both) should include the individuals the other taxpayer is including in their tax family”. The result goes on line 5.
Step 2 is separate from the 50% spousal allocation: “determine an allocation percentage with the taxpayer(s) including in their tax family the individual(s) enrolled in the plan.” The same rules as for the divorced case apply: “You may use the percentage you agreed on for every month in which this allocation rule applies, or you may agree on different percentages for different months.” With no agreement, “the allocation percentage is equal to the number of individuals the other taxpayer includes in their tax family for the tax year who were enrolled in the qualified health plan for which you are allocating amounts”, divided by the total number of individuals enrolled in the plan. “You must compute the PTC and reconcile APTC using the remaining amounts.”
Lines 1 to 6
| Line | What it asks |
|---|---|
| 1 | “Enter 1.0” |
| 2 | “Enter as a decimal the total of the percentage(s) from Step 2 above allocated to the other taxpayer(s)” |
| 3 | “Subtract line 2 from line 1” |
| 4 | “Divide line 3 by 2.0. Enter the result as a decimal” |
| 5 | “Enter the applicable SLCSP premium as determined in Step 1 above.” The sheet then says to go to line 6 only “if you checked the box in the top right-hand corner of Form 8962, or Exception 1 under Married taxpayers” applies. “Otherwise, stop here” |
| 6 | “Multiply line 5 by line 3.” |
The box and the exceptions are the ones in the publication’s discussion of married taxpayers. Exception 1 is for “certain married persons living apart”, and the box on Form 8962 is the one a victim of domestic abuse or spousal abandonment checks under Exception 2.
Step 4: what goes in Form 8962, Part IV
The publication says “If you use the same percentage for every month during which this allocation method applies, use only one of lines 30 through 33 in Part IV to report the allocation.” “If you use different percentages for different months under Step 2, use a separate line in Part IV for each allocation percentage.”
| Column | What goes in it |
|---|---|
| (a) | “Enter the Marketplace-assigned policy number from Form 1095-A, line 2.” |
| (b) | “Enter the SSN of your spouse.” |
| (c), (d) | The first and last month you are allocating, for example 01 and 06 for January through June. |
| (e) | “If your filing status is married filing separately and you did not check the box in the top right-hand corner of Form 8962, leave column (e) blank.” “enter the decimal from line 4 of Worksheet E in column (e)” if you checked the box or Exception 1 applies. |
| (f) | “If your filing status is married filing separately and you did not check the box in the top right-hand corner of Form 8962, leave column (f) blank.” If you did, or Exception 1 applies, the publication says to “enter the decimal from line 3 of Worksheet E in column (f)” and add the line 6 amount to the column (b) totals. |
| (g) | “Enter the decimal from line 4 of Worksheet E.” |
The IRS example: Pat and Jamie
The publication’s example is “Pat and Jamie were married for all of 2025 and have three children, Jason, Alicia, and Dawn.” They file as married filing separately, check no box, and the children moved in with their uncle Andy in April. Pat’s coverage family is Pat, Jason and Alicia, and Jamie’s is Jamie and Dawn. Pat and Andy agree on 67% to Andy; Jamie and Andy agree on 50%. Pat’s worksheet, recomputed:
| Line | Entry | Value |
|---|---|---|
| 1 | Enter 1.0 | 1.0 |
| 2 | Percentage Pat and Andy agreed in Step 2 | 0.67 |
| 3 | Line 1 minus line 2 (computed) | 0.33 |
| 4 | Line 3 divided by 2.0, as the publication prints it (computed) | 0.17 |
| 5 | Applicable SLCSP premium for Pat’s coverage family of three | $450 |
| 6 | Line 5 times line 3 | left blank: no box checked |
Line 4 is 0.33 divided by 2.0, which is exactly 0.165; the publication prints it as 0.17. Pat enters 0.17 in column (g), leaves (e) and (f) blank, and enters $34 of APTC in column (f) of lines 12 through 23 (the $200 monthly APTC times 0.17, computed).
Jamie’s worksheet:
| Line | Entry | Value |
|---|---|---|
| 1 | Enter 1.0 | 1.0 |
| 2 | Percentage Jamie and Andy agreed in Step 2 | 0.50 |
| 3 | Line 1 minus line 2 (computed) | 0.50 |
| 4 | Line 3 divided by 2.0 (computed) | 0.25 |
| 5 | Applicable SLCSP premium for Jamie’s coverage family of two | $400 |
| 6 | Line 5 times line 3 | left blank: no box checked |
Jamie’s column (g) is 0.25, and her APTC is $50 a month (computed). Andy’s share is on Worksheet F.
Example with invented numbers
Illustration, not an IRS example. This shows line 6, which the publication’s own example leaves blank. Every result is computed from invented inputs.
| Line | Entry | Value |
|---|---|---|
| 1 | Enter 1.0 | 1.0 |
| 2 | Percentage agreed with the other taxpayer in Step 2 (invented) | 0.40 |
| 3 | Line 1 minus line 2 (computed) | 0.60 |
| 4 | Line 3 divided by 2.0 (computed) | 0.30 |
| 5 | Applicable SLCSP premium (invented) | $600 |
| 6 | Line 5 times line 3, because the box was checked (computed) | $360 |
With 40% going to the third taxpayer, each spouse’s share of the remainder is 0.30 (computed), and the SLCSP amount that line 6 carries is $360 (computed).
Edition
This page reads Publication 974 (2025), Premium Tax Credit (PTC), the file irs.gov served on 2026-11-05. Worksheet letters and line numbers belong to that edition, so check the label printed on the worksheet in your own copy before you follow a line reference.
Common mistakes
- Treating the 50% spouse split as a negotiated number. Line 4 builds it in; only the third taxpayer’s share comes from an agreement.
- Completing line 6 when no box is checked and Exception 1 does not apply. The sheet says to stop after line 5.
- Entering the line 3 decimal in column (e). Column (e) takes line 4, and line 3 goes in column (f) only when the box is checked or Exception 1 applies.
- Including the third taxpayer’s covered people in both spouses’ coverage families. The SLCSP rule puts them in one, not both.
Related: Worksheet F, Form 8962 lines 30 to 34, and Form 1095-A column B.
Find the right next step for your situation
About how much do you have invested? Pick the range that fits; your next step appears immediately below.
Compare vetted advisors for your finances
For U.S. investors with $250,000 or more in investable assets. WiserAdvisor is an independent service matching you with 2 to 3 vetted advisers. Its form asks for your ZIP code and answers to a few questions; a match is not guaranteed.
Free to request, with no obligation to hire. By submitting, you consent to calls, texts and emails from WiserAdvisor and up to three advisers. Advisers pay for introductions.
Clear Money Guide may earn a referral payment for a qualifying completed form. An introduction is not a Clear Money Guide recommendation.
Opens on WiserAdvisor’s site in a new tab.
Explore optional adviser matching today
Considering financial advice? Request an adviser introduction with no obligation to hire.
The form is run by Kapitalwise, our advisor-matching partner. Requesting an introduction is free. Submitting the form shares your contact details with advisers, so expect calls and texts. Advisers pay for introductions. Clear Money Guide may earn a referral payment for a qualifying submitted form, whether or not you hire anyone. A match is not guaranteed.
The Kapitalwise form opens here; you stay on this page.
What happens when you press the button
It asks about nine questions: age, investable assets, location; then your name, email and phone number, and verifies the phone by text. Nothing loads and nothing reaches Kapitalwise until you press the button.
Prefer flat-fee or hourly pricing instead? Compare ranges here.
Answer againSources
- Publication 974 (2025), Premium Tax Credit (PTC): https://www.irs.gov/pub/irs-pdf/p974.pdf
- IRS, About Publication 974, Premium Tax Credit (PTC): https://www.irs.gov/forms-pubs/about-publication-974
Read from the IRS documents linked above on November 5, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.