Premium Tax Credit

[Tullubenta]

Good morning/afternoon,

 I have a rather complex question to ask which include two folds; So currently my dad have a premium through the healthcare marketplace and there is a total of five individuals under that plan, myself included. For the whole year of 2018 I was under that plan though them as a dependent and I got married in December of 2018 and had my own insurance through my job. My dad forgot to reconcile the premium to take my name off it for 2019. So for the whole year of 2019 I was insured through my job and also through the marketplace healthcare plan. The IRS is now asking us for the 1095A-8962 form. I filed jointly with my husband, originally we were getting some funds back but now after my tax preparer input the information from form 1095A, it’s now showing we owe some funds. I guess because the income has change since because I am married, I have to pay the premium back?? Is there a way around this? Any help would be much appreciated and thanks

[VictoriaD75]

Unfortunately, no. If you were covered by marketplace insurance you must report it. However, you can change allocation percentages to any agreed upon amount. When you enter the 1095-A, you will indicate that the plan was shared with someone who is not on your return. Then, you will enter the allocation percentage. You can enter 0% & 100% between the two tax returns (yours and your father's). You can choose any percentages that you agree upon, as long as the total between the taxpayers is not greater than 100%. This can change the amount of net premium tax credit that you must pay back.

[AmeliesUncle]

As Victoria pointed out, if everybody is agreeable to it, it is usually best to allocate 100% to one person.

However, because you were eligible for employer insurance, column B on the 1095-A is wrong.   You (and/or your father) needs to look up the proper amount for a family of FOUR (rather than five).

https://www.healthcare.gov/tax-tool/#/premium-tax-credit

[Tullubenta]

Thank you for all the responses. When I was living at home my dad used to allocate 100%. I guess my question is now, how do I input the allocation on hr 8962 form? Part 4, situation 4?

[DaveF1006]

You would enter your shared portion of the amount on form 1095A.  I advise people to allocate the amounts according to how many people share the policy.  So if there are 4 people, I recommend allocating each amount on the 1095 A by 1/4.