I think I've figured it out. The requirements to claim the PTC in the first place are found in the instructions under Who Can Take the PTC. Even though my friend is an applicable taxpayer (requiremen...
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I think I've figured it out. The requirements to claim the PTC in the first place are found in the instructions under Who Can Take the PTC. Even though my friend is an applicable taxpayer (requirement 3) thanks to the domestic abuse exception, and nobody can claim him as a dependent (requirement 2), my friend fails requirement 1a because, in the end, there was no member of his tax family enrolled in a qualifying health plan on the first day of any month of the year. The case of having nobody in the tax family be on the policy isn't discussed in the allocation section because it's a disqualifier for taking the credit to begin with (corollary: it matters whose login the couple uses to fill out the Marketplace application; cross-applicants, beware. In this case, my friend [a Schedule C filer] got the benefit of self-employed health insurance deduction for spouse's premiums under his name, but we see there are also potential costs to such an arrangement!). However, that case arguably should be discussed in the Part IV instructions, because under Allocation Situation 4, it does seem like the two tax families should be able to arrive at an allocation agreement that is mutually beneficial, including allocating zero of the policy amounts to a taxpayer who is ineligible to take the credit. In this case, the spouse is also ineligible due to filing status and not falling under one of the exceptions. They should be able to decide where to assign the repayment obligation, keeping in mind differing repayment limitations for the taxpayers or any other factors. At least, that is my interpretation. Also, the SLCSP is, in this case, not incorrect on the 1095-A at all! It was established initially based on a coverage family of one (the spouse) living at the original residence. In the end, the only non-empty coverage family in this scenario is that of the spouse. Despite not being an applicable taxpayer and therefore unable to take the credit, the spouse is part of a tax family of two (including child) and a coverage family of one (self), according to the definitions of those terms. In particular, "Your coverage family includes all individuals in your tax family who are enrolled in a qualified health plan and are not eligible for MEC (other than coverage in the individual market)" makes no reference to being an applicable taxpayer or actually qualifying for PTC in the definition. The SLCSP should always be based on the coverage family, and the only one that makes sense here (due to being non-empty) is the spouse's. As it turns out, that is exactly the same coverage family the original SLCSP was based on, despite the tax families having both changed. It still only consists of the spouse at the original residence. So in this case, no change or allocation of the SLCSP would be needed; it is already correct on the 1095-A, but it is less clear to me how the allocations of premiums and APTC should fall. My view is that those other columns could potentially be allocated by agreement. Again, just my interpretation after a very long time poring over some very complex rules.