topic Re: 1095A Allocation in Deductions & credits

1095A Allocation

Shaggyman27 — Mon, 09 Mar 2026 08:49:38 GMT

My son was on our ACA Policy but isn't a dependent so we obviously now have to allocate a portion to him (my understanding is it can be zero).

This is where it gets interesting and the reason for my question. He made a LOT less than we did and if we allocate a larger portion to him (using different allocations in TurboTax to see where it shakes out), His Refund goes WAY up but ours only goes down slightly.

Is there any reason why we shouldn't just allocate the higher portion to him? Am I missing something that could get me/him in trouble with the IRS? Seems like a no-brainer

Thanks

Re: 1095A Allocation

PattiF — Tue, 08 Mar 2022 03:18:26 GMT

There is no reason that you should not allocate the higher portion to your son. The 1095-A can be allocated for the best benefit of those on the policy without any trouble from the IRS.

All percentages need to be the same. So if you allocate 100% to him, he also claims 100% of the Advance credit.

It is legal, BUT you are also required to report changes to the Marketplace. So you need to tell the Marketplace that he is no longer your dependent. Then he will get his own 1095-A next year.

Re: 1095A Allocation

Shaggyman27 — Tue, 08 Mar 2022 03:25:40 GMT

Thanks so much!

Adam

Re: 1095A Allocation

PattiF — Tue, 08 Mar 2022 03:34:51 GMT

You are welcome!