Confused about 8962 Shared allocation

[itsparkling]

I've read through the 8962 instructions and Pub. 974 and I'm still very confused about 8962 shared allocations.

Here's my situation:

I divorced in 2018.  I am required to pay health insurance for both of our kids.  I claim our daughter as dependent, my ex-spouse claims our son (50/50 custody arrangement).  My ex-spouse's income is right around 100% FPL and receives a large APTC.  My income is right around 400% FPL (household size of 2) and do not receive APTC.

I have so many questions, but my first question is do I need to do the shared allocation if I am eligible for a PTC? Can I just allocate 100% to my ex-spouse since she would likely getting a greater benefit than me? I have a family plan, so I don't know how to just allocate my kids' premiums.  Since my son is not on my tax return, it sucks that his premiums are not eligible for the PTC.  I am so confused, so any clarifications would be appreciated!

[MarilynG1 · Accepted solution]

Yes, you need to do the Shared Allocation to calculate the Premium Tax Credit (PTC). Indicate in the 1095-A section that you 'shared the policy with someone not on your return'.  

When TurboTax asks for your % Allocation, you can try a couple different configurations to see what works best for you (gives you a larger PTC), since you are the one paying the entire premium.

If there are 3 persons on the policy, for example, you can allocate 33% to the person not on your return.  Or, you can figure that 80% of the policy cost is for you, 10% for your daughter, and 10% for your son.  Any way you want to allocate the premium cost between the persons on the policy is fine, as long as the total doesn't exceed 100%.

You could allocate 100% of the premium cost to your son, but since he does not file his own tax return, this may not help your ex-spouse, unless he receives his own 1095-A.  In that case your ex-spouse could claim a premium allocation of 100% for him, as long as you agree.

Click the link for more info on Shared 1095-A Allocations.

[MarilynG1]

Yes, you need to do the Shared Allocation to calculate the Premium Tax Credit (PTC). Indicate in the 1095-A section that you 'shared the policy with someone not on your return'.  

When TurboTax asks for your % Allocation, you can try a couple different configurations to see what works best for you (gives you a larger PTC), since you are the one paying the entire premium.

If there are 3 persons on the policy, for example, you can allocate 33% to the person not on your return.  Or, you can figure that 80% of the policy cost is for you, 10% for your daughter, and 10% for your son.  Any way you want to allocate the premium cost between the persons on the policy is fine, as long as the total doesn't exceed 100%.

You could allocate 100% of the premium cost to your son, but if files his own tax return, this may not help your ex-spouse, unless he receives his own 1095-A.  In that case your ex-spouse could claim a premium allocation of 100% for him on her return, as long as you agree.

Click the link for more info on Shared 1095-A Allocations.