Split Custody with Form 1095-A and 8962

Taxquestioner98 · ‎January 27, 2026

My wife and I are filing our taxes married jointly and we have two kids. Her daughter with her ex, and our son. We take turns with her ex on claiming her daughter and this year it is his turn to claim her as a dependent. My wife, daughter, and our son are all on the same Marketplace Insurance Plan so we had to file a 1095-A. Since we aren’t claiming our daughter this year it was saying we were overpaid by over $2,000 from the APTC and that they were taking $1,950 (the maximum) from our refund. With some research we discovered Form 8962 and started filling out the allocation. From my understanding we are supposed to put 0% for ourselves and 100% for him? Doing that fixed our refund and put the $1,950 back in it. However, I’m not sure if we should be working with a different percentage for the allocation because I’m not really sure how the different percentages affect each of us. I am also not sure how this will likely affect his tax refund (I think he makes close to the same income as us, or less). Neither dependent has an income as they are both under 5.

Mike9241

the 1095-A is reported on the return of whomever is claiming the dependent, in addition to the policyholder. Allocations can be anywhere from 0% to 100%. One rule is that for each month, the same % must be used in all 3 columns. In addition, if the dependent is required to file an income tax return, her modified adjusted gross income must be included on the 8962 of the OP. There is no way for anyone in this forum to know how the OPs return will be affected if any amount is allocated to the daughter.

by the way, if you and your wife are the custodial parents of the daughter, you must furnish Form 8332 to the ex so he can properly claim your daughter. Those are the tax rules. The IRS does not care what the courts rule

Taxquestioner98

Ok, so my understanding is that we both are required to put the 1095-A on our returns since he is claiming our daughter as a dependent but it is also my wife and son’s policy as well? The dependent doesn't file an income tax return, as both kids are still under 5 years old. I just don’t know how the allocation percentage should be split because I don’t fully understand all of this.

Thank you for the information about Form 8332, I had not heard of it. Will I have to file that form myself as well? and will it have to be filed every year as we switch back and forth on claiming her or does it only get used the years he is claiming her?