Form 1095-A

[normhaas]

I received a 1095-A from Covered California for my daughter's health insurance. I am listed as the Recipient and my daughter as the Covered. Turbo Tax is asking if if I shared the policy with another taxpayer who's not on my taxes. Do I check that boxer leave it blank? Do I consider my daughter as sharing the policy with me even though I wasn't covered? Screen shot attached.

[Vanessa A]

If your daughter is a dependent on your return, then you will answer No, you do not share the policy with another person.

If your daughter is NOT a dependent on your return, then you will answer yes you do share it with another person and she will need to enter it on her return as well. 

[normhaas]

Thanks. She was not a dependent in 2021, but I was paying her health insurance premiums through Covered California while she was finishing up college. Will she need to check the same box in Turbo Tax and add me and my SSN? Will it affect her tax burden? When I click the box on my Federal return it adds about $700 in taxes! It seems less than "affordable".

[normhaas]

I have another question. How do I calculate the percentages for me and the SLCSP? Is it 100% for both? Also, what about the advanced payment percentage box? See screenshot:

[DaveF1006]

The percentage allocation between you two is an arbitrary amount just as long as it adds up to 100% between the two of you. Here is how to enter.

1. Assuming you received a 1095A issued in your name, and there are totals listed in columns A,B, or C in the monthly amounts

• You can indicate your cost share percentage is anywhere from 0% to 100% for each one of the categories that you listed above.
• Since you are entering the name and social of the other person sharing the policy, they will need a copy of your 1095 A, report the totals in Column A, B, and C and then enter your information as the other policy holder (you) that is sharing this policy. They will now enter percentage amounts that when, combined with your percentages, equal 100%.
• For an example, if this is a 50/50 split, you will enter 50% and your daughter will enter 50%. 
• If you choose to enter 100%, your daughter will enter 0% on her 1095A entry in her return..

@normhaas

[normhaas]

Interesting since Turbo Tax lets me put 100% in each box and no error gets flagged. What's the explanation?

[DaveF1006]

In your return you can claim up to 100%. This means when your daughter prepares her return with the 1095A information, she needs to report 0%.  If she claims 100% also, her return may be electronically filed but at some point, both of you may receive a letter from the IRS asking you to correct the percentage allocations once the 1095A information from both returns is reported. It is then that the mismatch in percentage allocations will be discovered.

There is no rule in the IRS tax code that stipulates what the percentage allocations should be. A equitable allocation though should be 50/50 but that is just my opinion.

@normhaas