You can allocate the policy in whatever way you like, as long as it adds up to 100%. You can allocate the full amount to her tax return and zero to yours, or vice versa. Likewise, you can split it 50/50 or any other combination that adds up to 100%. Try different combinations to find the best tax outcome.
If you had a Marketplace plan and used the premium tax credit to lower your monthly payment, you’ll have to “reconcile” when you file your federal taxes. This means you’ll compare:
- The amount of the premium tax credit you used during the year. (This was paid directly to your health plan, so your monthly payment was lower.)
- The premium tax credit you actually qualify for based on your final income for the year.
Any difference between the two figures will affect your refund or tax owed. The advance credit amounts in Column C are based on your estimates of total income, family size and zip code. If the actual income, family size, or zip code is different when you file, TurboTax will reconcile your 1095-A on From 8962.
Advanced Premium Tax Credit calculation is based on a comparison of the Monthly Premium Amount you pay and the Monthly Premium Amount of Second-Lowest Cost Silver Plan.
Make sure to include all premiums paid by the due date of the return, even if your 1095-A shows a -0- as the enrollment premium for that month.
For each month you had insurance, make sure you do not input $0 in Column B. Enter all amounts paid by the due date of the return, even if Form 1095-A shows a -0- as the enrollment premium for that month. If your 1095-A reflects $0, reach out to your marketplace provider to find out what the Second-Lowest Cost Silver Plan amount was.
You may also find this information using the Department of Health and Human Services tax tool.
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