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Confused about 8962 Shared allocation

I've read through the 8962 instructions and Pub. 974 and I'm still very confused about 8962 shared allocations.

 

Here's my situation:

I divorced in 2018.  I am required to pay health insurance for both of our kids.  I claim our daughter as dependent, my ex-spouse claims our son (50/50 custody arrangement).  My ex-spouse's income is right around 100% FPL and receives a large APTC.  My income is right around 400% FPL (household size of 2) and do not receive APTC.

 

I have so many questions, but my first question is do I need to do the shared allocation if I am eligible for a PTC? Can I just allocate 100% to my ex-spouse since she would likely getting a greater benefit than me? I have a family plan, so I don't know how to just allocate my kids' premiums.  Since my son is not on my tax return, it sucks that his premiums are not eligible for the PTC.  I am so confused, so any clarifications would be appreciated!

 

 

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Expert Alumni

Confused about 8962 Shared allocation

Yes, you need to do the Shared Allocation to calculate the Premium Tax Credit (PTC). Indicate in the 1095-A section that you 'shared the policy with someone not on your return'.  

 

When TurboTax asks for your % Allocation, you can try a couple different configurations to see what works best for you (gives you a larger PTC), since you are the one paying the entire premium.

 

If there are 3 persons on the policy, for example, you can allocate 33% to the person not on your return.  Or, you can figure that 80% of the policy cost is for you, 10% for your daughter, and 10% for your son.  Any way you want to allocate the premium cost between the persons on the policy is fine, as long as the total doesn't exceed 100%.

 

You could allocate 100% of the premium cost to your son, but since he does not file his own tax return, this may not help your ex-spouse, unless he receives his own 1095-A.  In that case your ex-spouse could claim a premium allocation of 100% for him, as long as you agree.

 

Click the link for more info on Shared 1095-A Allocations.

 

 

 

 

 

 

 

 

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Expert Alumni

Confused about 8962 Shared allocation

Yes, you need to do the Shared Allocation to calculate the Premium Tax Credit (PTC). Indicate in the 1095-A section that you 'shared the policy with someone not on your return'.  

 

When TurboTax asks for your % Allocation, you can try a couple different configurations to see what works best for you (gives you a larger PTC), since you are the one paying the entire premium.

 

If there are 3 persons on the policy, for example, you can allocate 33% to the person not on your return.  Or, you can figure that 80% of the policy cost is for you, 10% for your daughter, and 10% for your son.  Any way you want to allocate the premium cost between the persons on the policy is fine, as long as the total doesn't exceed 100%.

 

You could allocate 100% of the premium cost to your son, but since he does not file his own tax return, this may not help your ex-spouse, unless he receives his own 1095-A.  In that case your ex-spouse could claim a premium allocation of 100% for him, as long as you agree.

 

Click the link for more info on Shared 1095-A Allocations.

 

 

 

 

 

 

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

Highlighted
Expert Alumni

Confused about 8962 Shared allocation

 

Yes, you need to do the Shared Allocation to calculate the Premium Tax Credit (PTC). Indicate in the 1095-A section that you 'shared the policy with someone not on your return'.  

 

When TurboTax asks for your % Allocation, you can try a couple different configurations to see what works best for you (gives you a larger PTC), since you are the one paying the entire premium.

 

If there are 3 persons on the policy, for example, you can allocate 33% to the person not on your return.  Or, you can figure that 80% of the policy cost is for you, 10% for your daughter, and 10% for your son.  Any way you want to allocate the premium cost between the persons on the policy is fine, as long as the total doesn't exceed 100%.

 

You could allocate 100% of the premium cost to your son, but if files his own tax return, this may not help your ex-spouse, unless he receives his own 1095-A.  In that case your ex-spouse could claim a premium allocation of 100% for him on her return, as long as you agree.

 

Click the link for more info on Shared 1095-A Allocations.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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