My husband and I had our son on our marketplace plan for 8 months last year. In September our son got a job and his own insurance so we took him off our plan. He made too much to claim as a dependent and it looks like we are being asked to return all of the tax credit we received for the year ($28,000!) This doesn't sound right. Is there something I am doing wrong on the form?
Since there will be two tax returns that will have the same 1095-A on it, you will need to prorate the amounts. He will need to enter the 1095 as well and between you both, figure out how to apportion the amounts. As long as it adds up to 100% between you both, it doesn't matter how you do it.
I'm somewhat confused because we never had this issue before (our son was always in school and we claimed him as a dependent). When he got his job in September he applied for private health insurance with his company and so he did not receive a 1095-A form. Nor can we claim him as a dependent because his income was over $4200. But the first 8 months of the year we did support him and provided him with health insurance (marketplace). So I'm not sure how we allocate percentages and how he will show that on his tax return. Does he use our 1095-A form? Thank you
Yes, he will use your 1095-A form.
Please see this response from ShawnaD. It is written for the "child" point of view, but it still applies.
How you enter the information depends on if your parents are claiming you as a dependent on their tax return.
Please see the information below from Superuser TaxGuyBill:
- If your parents told the Healthcare Marketplace (usually when they applied for health insurance) that you were not going to be their dependent, you will probably receive a 1095-A of your own, and you will need to enter that into TurboTax. (instructions included further down below)
- If your parents did NOT tell the Healthcare Marketplace (usually when they applied for health insurance) that you were not going to be their dependent, you will NOT receive a 1095-A of your own.
- You will need to get a copy of your parents' 1095-A and enter it on your tax return. On the screen after entering the 1095-A, you will check the box indicating that the policy was shared by somebody that is not on your tax return. It will then prompt you with further questions to determine how much of it is "allocated" to you (even if it is 0%). Your parents would follow this same procedure.
- If there was Advance credit received (column C of the 1095-A), your parents have the option to claim 100% of the 1095-A on their tax return, or to "allocate" part (or all) of it to you. If you both agree, the allocation can be anywhere from 0% to 100%. If you can not agree and Advance credit was received (column C on the 1095-A), then it is divided by the number of people on the insurance policy. For example, if the insurance policy covers 4 people, each person is allocated 25%.
To enter Form 1095-A, please see the instructions below:
- Select Federal Taxes then select Health Insurance on the Tax Timeline
- Answer the first question and click Continue
- On the second screen "Were you enrolled in any of these less common plans in 2016?" select "Yes"
- Select "Obamacare plan (1095-A)" on the next screen
- Select "Yes" to the next screen "Do you have a 1095-A form to enter for your Obamacare Plan?"
- Enter the data Form 1095-A on the next screen
Was he a full-time student from January through May? If so, unless he provided over 50% of his own annual support, he is probably your dependent.
If he is NOT your dependent, they you may try allocating 100% of the 1095-A to his tax return for those 8 months (the 4 months will still need to be on your tax return).
If your income is fairly close to the 400% poverty level, then try contributing to a Traditional IRA to lower your income down to 400%. The would greatly lower the repayment.
Following up on this question.
Another gave advice to allocate 0-100%between us.
Since our son is filing separately, and was taken off our policy in August how do we allocate?
Can my husband and I allocate 100% to our son and we take 0%?
Not sure how to do this because our son was not on the policy for 4 months.
Any assistance is appreciated.