1095-A for Child on Parents 1095A That is Not Claimed as Dependent, But Could Be

[taxpayer122]

I am a 22 year old full time college student.  I earned enough money in my summer internship to require filling a tax return.  I would qualify as a dependent on my parent's 2023 tax return since my earned income did not provide more than half of my support; however they are NOT claiming me so i can maximize the education credits that i receive on my return.  I am included on my parent's ACA insurance policy and am listed on their 1095-A.  There is no data listed in Part III, Columns B and C of the 1095-A since my parents did not receive an APTC.  When my parents entered the 1095-A in their TT interview, they indicated policy is shared with another taxpayer who is not on their taxes (me).  They input my SSN on Line 30, box b of Form 8962 and allocated 81% of the premiums to themselves and 19% to me. 

On my TT interview, i indicated that "Another Taxpayer Can Claim Me on Their Return" but "Another Taxpayer will NOT claim me". I did not receive a 1095-A for my ACA insurance since i am included on my parent's policy.  How do i answer the question on whether I received a 1095-A? If i answer "No", TT issues a warning that says if i am covered by a ACA policy, the IRS will reject my return if i do not enter my 1095-A.  If I answer "yes" and indicate that i shared this policy with a taxpayer who is not on my taxes and enter my father's SSN as the person who i  shared the policy with, TT generates an error which states that the 1095-A must be reported on the return who can claim the dependent exemption. 

How should i handle this?

[SusanY1]

Since you can be claimed as a dependent on your parent's return (even though they will not claim you), you are not eligible for any premium tax credit for health insurance premiums.

You should not allocate any portion of the premiums on your tax return.

[taxpayer122]

So should I answer "No" to the interview question on if i received a 1095-A?

[Vanessa A]

That is correct, you can answer No to did you receive a 1095-A.  Since there is no data listed on Part C of the 1095-A, you do not need to enter the form on your return.  

If your parents received the Advanced Premium Tax Credit (have a number in Column C) then you would need to enter the form on your return.  You are still not eligible to receive the credit as a dependent, but since your SSN was in the Marketplace as part of a policy receiving the credit, you would need to enter everything and then allocate the number from 0-100% as long as they total 100% between your return and your parents return. 

Form 8962 is only for those who received the Premium Tax Credit in Advance or are eligible to receive it and want to receive it when they file their return.  

As long as no credit was received, your return should not be rejected.

[taxpayer122]

Thanks for the responses. 

My parents paid all of the premiums without any ATPC (Column C was empty). 

One more question though. Since my parents are not claiming me as a dependent, are they required to allocate my portion of the premium to my SSN on Part IV of their 8962?

Thank you.

[RobertB4444]

No.  Tell them that they do not need to allocate their form since column C was blank.  It will make no difference to their return or yours.

@taxpayer122 

[taxpayer122]

Thanks for the response. 

We have another question though.  Since my parents are not claiming me as tax dependent are they allowed to include the cost of my premium in Part III, Column B of Form 1095-A? Or are they only allowed to use the SLCSP for people in their Tax Family which would not include me. 

Thank you.

[Vanessa A]

Yes.  They can claim 100% of all of it and you can claim 0% of all of it.  It does not matter that they are not claiming you.  It only matters that they CAN claim you.  So since they CAN claim you, they would enter the information on the 1095-A as if they are claiming you.  You are still a part of their tax family since they CAN claim you. 

[taxpayer122]

But if i am part of their tax family doesn't that imply that must include my MAGI on their 8962?  And the only way to include my MAGI on their 8962 in TT is if they claim me as a dependent.  

[DawnC]

Did they receive any tax credits or discounts on their premiums?   

[taxpayer122]

They did not receive any APTC (Column B and C are blank on the 1095-A they received).  The whole purpose for this, is to not count me as a dependent since i have a high MAGI which resulted from my employer including paid living expense on my W-2.  If my parents don't count me as a dependent, it is my understanding that they don't have to include my MAGI on their 8962.  If that is correct, the question then becomes are they allowed to include the cost of SLCSP (which they paid on my behalf) on their their 8962?  

[DawnC]

They are not going to have to include your MAGI if they are not taking any credit.