One more question about 1095-A

[mjmommy2001]

I am still confused about the allocation percentages for the premium, slcsp and advant.   My husband, I and our son were all on this healthcare plan but our son is filing on his own.  I know the percentages need to add up to 100%.   Could it go 67%, 100% and 67% for us and then on my son's be 33%, 0% for slcsp and then 33%.  Would this cause his return to get rejected?  Am I doing this absolutely wrong?  Please help thank you so much

[Vanessa A]

When you are allocating the percentages, columns A, B and C should all be the same amount.  So if you and your husband are claiming 67%, then columns A, B and C should be 67%.   Your son's would all  be 33%. 

[mjmommy2001]

Ok, thank you so much, but one more question.  Can my son have a higher % allocated, like could we do 90% him and 10% us?  Can he have a higher % than my husband or I.  By doing this, we do equal 100%  but it gives us both a better outcome.  

[JamesG1]

The IRS requires that your percentages are agreed upon by all and that the percentages add up to 100%.

You may allocate the percentages as you outlined and as listed below.

A  5%

B  5%

C  90%

  100%

@mjmommy2001 

[NCperson]

@Vanessa A @JamesG1 why are two experts providing conflicting responses?

I vote with @Vanessa A 

[Mike9241 · Accepted solution]

A shared policy occurs when a qualified health plan has been purchased from the Marketplace or from a state health care exchange and it covers at least one individual on the tax return and at least one individual not on the tax return. Here is a common scenario where this occurs:

• the taxpayer enrolled their child who is filing their own return.

How are the allocation percentages determined?

The policy doesn't have to be allocated evenly between the taxpayers. For example, a policy that consists of a taxpayer, spouse, and their child who is filing his or her own tax return might be allocated 100% to the parents and 0% to the child. Or, three individuals sharing a policy might agree to divide it 50% to one and 25% to the other two. It's up to the taxpayers to decide amongst themselves how they wish to allocate.

If the taxpayers sharing the policy cannot agree on an allocation percentage, per the Form 8962 instructions "each taxpayer’s allocation percentage is equal to the number of individuals enrolled by one taxpayer who are included in the tax family of the other taxpayer for the tax year divided by the total number of individuals enrolled in the same policy as the individual(s)."

for all 3 columns for any taxpayer, for that month the same % must be used. The total must be 100% for all taxpayers for that month. Different %'s can be used for different month. the same rules apply

this is the 8962 instructions which supports the above

Under the rules in this section, you and the other
taxpayer may agree on any allocation of the policy
amounts between the two of you. You may use the
percentage you agreed on for every month for which this
allocation rule applies, or you may agree on different
percentages for different months. However, you must use
the same allocation percentage for all policy amounts
(enrollment premiums, applicable SLCSP premiums, and
APTC) in a month. If you cannot agree on an allocation
percentage, each taxpayer’s allocation percentage is
equal to the number of individuals enrolled by one
taxpayer who are included in the tax family of the other
taxpayer for the tax year divided by the total number of
individuals enrolled in the same policy as the individual(s).
The allocation percentage you use and that you put on
line 30 of Form 8962 is the percentage of the policy
amounts for the coverage that you will use to compute
your PTC and reconcile APTC.

[mjmommy2001]

Thanks everyone.  We ended up doing 50/50 and all agreed upon.  Taxes filed and accepted.