You can allocate the policy however you 3 agree to allocate it as long as the totals reported for the 3 of you add up to 100%. 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 - premium amounts and advance payments of the Premium Tax Credit (PTC). Two examples are below.
Child/Children on another tax return
If you share a policy with someone who is claimed on another tax return (usually a child), you can take the number of people on your tax return who are covered on that plan and divide it by the total number of people on the plan. This would be your percentage of premiums, SLCSP and advanced payment of the premium tax credit, unless you agreed on a different number beforehand.
Example: Rich and Jackie are divorced and have two children, Ronald and Jimmy. The children live with Jackie, and she claims them as dependents, but Rich enrolled him and the two children in a Marketplace plan in 2021. Rich and Jackie didn't agree on allocation percentages, so she takes the number of people on her taxes who are on the plan (the two children) divided by the total number of people on the plan (Rich and the two children). Jackie will take 67% of the premiums, SLCSP and advanced payment of the premium tax credit. Rich will take 33%.
Shared plan with more than one person
If you shared a Marketplace plan with two or more people who are on separate tax returns, you'll have to find what the SLCSP is for each person's household and add it up. Then, divide your SLCSP by the total SLCSP to get your percentage of premiums and advanced payment of the premium tax credit. The SLCSP percentage is usually left blank.
Example: Alberto has two young daughters and a 25-year-old son, Mitchell. Alberto claims the two girls as dependents, and Mitchell files independently. All four of them shared a Marketplace plan. The SLCSP for Alberto and the two girls, a family of three, is $12,000, and for Mitchell alone it would be $6,000. Alberto divides $12,000 by the total cost of the SLCSPs for everyone, or $18,000, to get 67%. This would be his percentage of premiums and advanced payment of the premium tax credit. Mitchell divides his SLCSP, $6,000, by $18,000 to get 33%, or his percentage of premiums and advanced payment of the premium tax credit.
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