I think I just figured out how to reimburse the advance premium. In TurboTax's 1095-A Statement, I updated the Nov and Dec entries for Part III Column A (Monthly enrollment premiums) and Column B (Monthly SLCSP) to the actual costs without including my daughter but kept the Column C (Advance payment of premium tax credit) as listed in the original 1095-A sent to me by the IRS. This effectively acknowledging that the IRS gave me the advance credit for insurance that only qualify for us without my daughter. As a result, the advance premium is reimbursed to the IRS by reducing my incoming tax refund to the exact amount it should have been without my daughter getting the premium credit. I also changed my daughter's coverage termination date on Part II column E to end on 10/31/2021 instead of 12/31/2021. This will provide IRS the same eligible coverage date as shown in the 1095-C given to my daughter by her company. By following these steps, everything works out for us, the IRS, our daughter and her company. Now I just hope IRS accepts this solution.
