Form 8962 with allocation of zero not handled properly

Forum|Forum|5 months ago
February 21, 2026
12 replies
115 views

I need to allocate my ACA premium tax credit with another tax family on form 8962, and am having a problem. For 8 months of 2025 I shared my ACA policy with someone else who has their own tax family. Per IRS instruction for form 8962, the two of us can agree to any allocation between 0 and 100%. We have agreed that I will use 0% and they will use 100% for the allocation for those 8 months.

But when I enter 0 as my allocation for those 8 months, Turbotax decides to zero out the entire year, not just those 8 months. Only 8 months should be zero, the other months should simply be the amounts I entered from my 1095-A.

Is there a workaround for this bug?

Best answer by AmeliesUncle

Thanks for the suggestion. I just tried that and unfortunately it doesn't work. TT changes the 0.01 to 0 immediately upon entering it into the software, and as a result form 8962 is still blanked out.

I did notice one other bug. If you put in .01 rather than 0.01 (so no leading zero), rather than changing it to zero TT changes it to blank. This leaves the field on form 8962 blank and throws a warning "!" on the label for form 1095-A in the forms view. But that doesn't solve the problem either.

@RobertB4444

It definitely looks like a 'bug', but I suspect a work-around is to just enter it as two separate 1095-As (January through August for one, and September through December for the other.

You might need to add an "a" and "b" to the end of the policy number so TurboTax doesn't give another error (don't worry, that policy number does not show up on the tax return and is not actually transmitted with the e-file).

Monikak11

Level 2

To enter a 0% allocation for Form 8962 in TurboTax without zeroing out the entire form, you must use the Shared Policy Allocation section to assign 100% of the policy to the other taxpayer and 0% to yourself.

Before taking any other steps, you might try exiting the return. Clear cache and cookies, and restart your computer.

When you enter your 1095-A into TurboTax, there will be an option (a box to check) that says I shared this policy with someone not on my tax return. After checking that box, you will get the option to name someone else as recipient of the amounts in Boxes A and C

In the 1095-A entry screen, select "Yes" to shared policy, enter the other person's SSN, and enter "0" for your percentage in Part IV.

Steps to Enter 0% Allocation (Shared Policy):

Enter 1095-A Data: Enter your Form 1095-A details as shown.
Shared Policy Question: When asked if you shared this policy, answer Yes.
Allocate Percentage: When asked for your allocation percentage, enter 0 for all months.
Other Taxpayer Info: Enter the SSN of the person who is taking 100% of the policy allocation.
Verify Part IV: This tells TurboTax that while you have a 1095-A, your share of the premium tax credit is 0%, thus not zeroing out the entire form, but rather correctly reporting a 0% allocation in Part IV of Form 8962

Vanjam12Author

Level 2

Thank you for the response. I actually tried all of that but it still zeroed out the entire 8962.

Yes to sharing, entered the SSN of other person, January as month shared coverage started, August as month shared coverage ended, 0% for share of enrollment premium as well as SLSCP and PTC.

But, I did not see the final step that you mention, "Verify Part IV ..." If it matters, I did this using the desktop version of Premier. Is "verify" available on desktop version?

Vanjam12Author

Level 2

And just to be clear, by "... zeroed out the entire 8962" I mean that it sets the "tax family size" (line 1) to 0 and all of the other lines are blank except for line 30 which has the policy number, SSN, start month (1), end month (8) and premium, SLCSP, and PTC percentages (0.00) filled in.