I used TurboTax Deluxe Desktop to prepare and e-file both our (MFJ) and our non-dependent child's (single) returns. We entered shared marketplace policy allocations (Parents: 0%, non-dependent child 100%) in TurboTax referencing each other's SSN. TurboTax generated the form 8962 for both returns based on this information. Part II on our return has 0 amounts for all columns and our child's Part II has the entire amounts from 1095-A. Our child's return was processed, and refund was issued. However, we just received a letter from the IRS saying that "form 8962 Part II columns a, b, c don't match the information we have on file from the Health Insurance Marketplace".
My understanding is that IRS automatically reconciles the allocation based on the policy number and SSN's on both returns to make sure that percentages and amounts add up to 100%.
(Note: I noticed that child's form 8962 form IV shows the Percentage as 1.00 (instead of 100%), although Part II amounts are calculated correctly using 100%. Not sure if this is an issue or not.)
Any advice/input from experts would be appreciated. This will help me respond to the IRS.
