How to file form 1095A as a dependent when you are on parents health plan

[adien996]

I received a 1095-A form, and since I was on my parents health plan last year (2019) from Jan-Nov, all of our numbers are combined in the form. However, I started a new job in January and was making $65,000. So this year i'm thinking of filing my own taxes. And at the 1095A section, I input the numbers as what was received, and they are making me pay $10,000 in taxes???? I'm so confused, any help would be appreciated.

Other questions I have: Should I just file together with my parents this year?

Where it says form 8962 will need to be filled as well.. Where am i going to fill that out in turbotax?

[AlexanderS08]

Was it January of 2020 that you got your new job?

Unfortunately, if it was January of 2019 then your parents will not be able to claim you as a dependent because of your income.

The best case scenario would be if you did not start until January of 2020 and then your parents do claim you as a dependent. If they claim you on their tax return they will be able to reconcile the Advance Premium Tax Credit on your behalf and then you can essentially ignore the 1095-A and won't need a Form 8962 (because you will be listed on your parents Form 8962).

The problem is if they can't claim you on the return then you will have to reconcile your portion of the credit (you can claim a lesser amount by doing an allocation with your parents) and then it is possible you could have to repay some portion. But doing an allocation will reduce any repayment significantly.

[adien996]

Thanks for your answer. I started working in Jan2019 (4 months after my college graduation, I'm 24) .  The health plan started in December of 2018.

If they can't claim me on their return and I have to reconcile my portion of the credits on the 8962. Do both parties (my parents and I) would have to file 2 separate forms? And what is the minimum number I can reconcile? It would be nice to claim 0... but is that possible ? My parents make a combined salary of ~35k.

[VictoriaD75]

You will have to allocate the information on your 1095-A. This would be reported on your return as one percentage, and on their return as another percentage. You can allocate anywhere from 0% to 100%. This can be an agreement between you and your parents. 

If you have a 1095-A to enter, log into your TurboTax account and follow these steps:

• Click on Deductions & Credits under Federal
• Under the menu for Medical, click Start/Revisit next to Affordable Care Act (Form 1095-A)
• Answer Yes indicating that you have the form to enter
• Complete the information on the next screen to match your form and click continue. Do not allocate on this screen.
• On the following screen, choose I shared this policy with another taxpayer who's not on my taxes
• On the screen that follows, provide the information for your parents and the allocation percentages

[adien996]

Thanks Victoria. My last question is if i use 0%, would my parents be responsible for the other 100%? 

so say i input 100% into it and i end up owing $10,000. If i input 0% and they dont charge me anything, would my parents be forced to pay that remaining $10,000? Or would it be a fraction of that based on their combined income? 

[ColeenD3]

That isn't quite how it works. You are allocating the cost of the insurance and the amount the tax credit paid towards the cost. If there are three people sharing, you can allocate one third to each person. 

You can also play with the allocations to see which is more beneficial.

[adien996]

I went ahead and played around with the numbers. I found that it's more beneficial if I allocate 0% and my parents 100%. That would reduce the amount of tax owed down to $2000, and I can now then help them pay for that amount. 

I'm not entirely sure but is that allowed? Can I claim an allocation of 5% and my parents 95%? Or 0vs100? Or does it have to be shared equally between 3 people?

[ThomasM125 · Accepted solution]

You can allocate the premiums any way you want, provided all taxpayers agree. Otherwise, you have to allocate based on the number of people on the policy.