Would like some clarification re TurboTax advice regarding reconciling APTC/PTC (Advanced Premium Tax Credit/Premium Tax Credit) at https://ttlc.intuit.com/turbotax-support/en-us/help-article/taxation/parents-1095-form-return/L2phDG.... This is coming up for me a context where 1) parents list their adult child as a dependent on their ACA marketplace application for the coming year; 2) coverage and APTC is provided accordingly; 3) parents receive a 1095-A filled out accordingly (with numbers in all columns A-C); but 4) parents later discover their adult child did not qualify as their dependent for that tax year after all.
My confusion relates to the fact that all of the instructions/examples given on the TurboTax page cited above assume the dependent would otherwise be filing themselves. But what about situations where they wouldn’t otherwise be required to file? Looking at Example 4 from 26 CFR § 1.36B-4(a)(4) (and pp 12-13 of the Form 8962 instructions), it seems if the parents' adult child is not otherwise required to file for that tax year themselves (e.g., adult child didn't make enough) and does not in fact file themselves, and no other taxpayer can claim that adult child as a dependent for that tax year, the instructions given on the cited TurboTax page, regarding allocation by percentage (agreed upon or otherwise), are inapplicable. In those cases, in accordance with Example 4 from 26 CFR § 1.36B-4(a)(4) (and pp 12-13 of the Form 8962 instructions), the parent can (and I'm thinking must) alter/reduce their SLCSP and PTC #s (which they would have otherwise have put directly, as-is from their form 1095-A onto their Form 8952) to match what those numbers *would* have been (determined by using "applicable SLCSP premium tools," discussed on p 27 of Pub 974) if they had *not* included their non-dependent adult child as their dependent on their marketplace application.
Can someone with experience chime in on whether or not they see this the same way, and why or why not?
