I just realized I"ve been going around my elbow to get to my thumb. Lets stop that and give you the two basic scenarios.
If the student is "NOT" required to file a tax return and the student *WILL NOT* be filing a tax return, then the parents will claim 100% of the 1095-A for the PTC. Period. End of story.
If the student *is* required to file a tax return, or if the student is not required to file at tax return but *WILL* file a tax return for the sole purpose of getting with held taxes refunded to them, then the student "MUST" include their percentage portion of the 1098-A on their tax return. Here's how it works.
Lets assume there are only 3 people covered on your Marketplace policy. You, your spouse, and your student. That means that each of you individually is entitled to 1/3 (33%) of the PTC.
YOu will file your joint tax return claiming 66% of the policy. That means you only get 66% of the PTC. So you'll have to "pay back" 34% of it. (Totals *must* come out to 100%, so that's why "someone* gets 34%)
The student will also file the same exact 1095-A claiming 34% of the PTC. That 34% will be added to the student's refund (or reduce their tax liability accordingly.)
So you will need to provide your student a copy of that 1095-A.
Whew! Does that clarify and answer your base question now?
