HELP! Shared Policy Allocation: Adult child not in the same tax family and filing his own taxes

[sunshinejoe]

I purchased a policy in a different state for our adult child who is not in my same tax family and who will file his own. taxes. The 1095-A form came to me (as recipient) and the child is the only person listed (covered individual). This marketplace policy had equal amounts in each column, each month throughout the whole year for 2022.  We agreed to make it simple - he will claim zero on his end. So, if in question 1 I should put 100, what should I do for questions 2 and 3?  What should my child put on his end?

1. Percent of the premium that you paid: 100%

2. Percent of the Second Lowest Cost Silver Plan (SLCSP) that applies to you: ????

3. Percent of any advance payment of the Premium Tax Credit that applies to you: ????

[TeresaM]

If it has the same amount in Column A as Column B and C, then it sounds as if based on the estimates for income that were in the application at the beginning of the year, full Advanced Premium Tax Credit was given. 

If the application information was estimates for your son's income, and yours is higher, then some or all of the tax credit may need to be paid back if you claim 100%.

You can divide the allotment with him in any way that you like, as long as when the two returns arrive at the IRS they do not add up to more than 100%.

I recommend that you try it at 100% in all three columns and see what it does to your return. If it makes a huge difference, you may want to split it with your son.  As long as you coordinate with him, you can split it any way that you wish. Both returns will be reconciled with the Advanced Premium Tax Credit when it arrives at the IRS. 

[sunshinejoe]

Thanks for the response. Yes! The full Advanced Premium Tax Credit was given on estimates of income. 
So, when adding the numbers, both of our filings must equal 100 (combined)?

        Me  -  Child

Q1: 100 - 0

Q2:  0.   - 100

Q3:  0.  -  100

[MarilynG1]

Yes, enter the same % for all three questions, for either you or your son (depending on which gives the better tax outcome).

Or, enter 0% for all questions for you and your son enters 100%, or each of you 50%.  You may need to play with the numbers for the best outcome, and yes the totals need to be 100% between you. 

If you son has the lower income and the premiums were based on his income, it may work out best to allocate 100% to him. You can see the calculations for the Premium Tax Credit on Form 8962. 

Here's more info on Allocating 1095-A.

@sunshinejoe 

[Critter-3]

If the only covered  person on the 1095-A is not listed on your tax return then it should ONLY get reported on the covered person's return.    But if the program will allow it you will put 100% in all three sections and they will enter 0% in all three sections. 

[sunshinejoe]

Yes! The premium were based on my income. However, he was the only person covered on the 1095-A. He was not on the same family income, though.

I have to amend my tax filing voluntarily because I did not include this ‘shared policy’ and I realized of it after the fact. 

I was given different instructions where I should put 100 on Q1, and 0 and Q2 and Q3. But here I read I could adjust the numbers according to what benefits us the most. Is that still he way it is supposed to be?

[MarilynG1]

Yes, you can adjust the numbers for % of shared policy allocation, as long as they add up to 100%.

@sunshinejoe