1095-A for adult child who got a job in the last part of the year

[SheriC377]

I am disabled, and my adult child lives with me. For most of the year, she was unemployed and I had a marketplace  plan for her. But she got a job and was covered by health insurance through the job for the last three months of the year. She made enough in those months that I can't list her as a dependent on my taxes. How do I allocate the 1095-A between our two returns?

[Vanessa A · Accepted solution]

If you are not claiming her as a dependent on your return and she is filing as a non-dependent, you will both need to enter the 1095-A on each of your returns. After the form is entered you will be asked if this was a shared policy, if it was you will click yes.  Then you will be able to allocate an amount to you and your daughter.  You can claim 100% or 0%, she can do the same as long as it adds up to 100%. Many times parents paid the premiums and will allocate the full amount to themselves, while the kids just enter the form and allocate 0%.  If you choose to, you can also split it 50/50 or anyway that you want as long as the amounts add up to 100%. 

[nonr]

I am in the same situation.  When I tell TurboTax about my adult child, I am asked for their SSN, dates of coverage, and I can select 100% for all amounts.

BUT - nowhere am I asked to include my child's MAGI.  This has an effect on the overall subsidies, surely.
If she were a dependent, I would be asked for her MAGI, and it would be added to the total income to calculate subsidies.

I am puzzled about how to account for my child's income in this part of my return.

[BrittanyS]

If you are not claiming the adult child as a dependent, you will need to mark that you are sharing the policy.  Since the amount will be allocated, and split between the two of you depending on the percentage you enter on your return per individual, you will not be asked about the other individuals income.  Your adult child's income will be listed on their return with the 1095-A and their percentage of the allocation of the 1095-A.  I have attached Vanessa A's comment from above for more clarification:

"If you are not claiming her as a dependent on your return and she is filing as a non-dependent, you will both need to enter the 1095-A on each of your returns. After the form is entered you will be asked if this was a shared policy, if it was you will click yes.  Then you will be able to allocate an amount to you and your daughter.  You can claim 100% or 0%, she can do the same as long as it adds up to 100%. Many times parents paid the premiums and will allocate the full amount to themselves, while the kids just enter the form and allocate 0%.  If you choose to, you can also split it 50/50 or anyway that you want as long as the amounts add up to 100%. "

@nonr 

[nonr]

Thank you so much for that response.  I have found though, that I made a mistake when adding my daughter to our 2024 family ACA plan.  It turns out that she was not eligible for this.

Thus, the 1099-A shows subsidies based on a household size of 3, whereas we are filing only 2 - my wife and I, because my daughter turns out NOT to be a dependent in 2024.

So, what I want to do, to be on the safe side, is to pay back the subsidies that were given to us for my daughter.

I am wondering how I can adjust my percentages, and hers in order to do this.

Say the three of us received $1000 in subsidies, I want to pay back $200 of it let's say.   At the moment, the 1099-A and my return says we are entitled to $1000.  (But that is incorrect.)

Can you advise, please?

[DawnC]

After you enter the 1095-A, you can mark the box that says I shared this policy.   You can have your daughter take a percentage of the premiums and subsidies.   Or you can claim all of it on your return.   Between your two returns, the total should be 100%.

See this TurboTax FAQ for some examples.    You can allocate columns A and C.   But you will both need to update your Column B amounts.  You can use the tax tool at Healthcare.gov to find the amount for Column B.  

 

[nonr]

Thank you!  But I think I am in a different situation.   Essentially I wish to NOT claim part of the advance payments I received.  

*** I want to pay back the advance tax credits I received for my daughter on the 1099A. ***

I want to do this because my daughter was wrongly anticipated as being a dependent. She should NOT have shared our plan.  Until she started her job mid-year, she should have been on Medicaid or bought her own Marketplace plan (and paid full premium without any advance tax credit.)

My daughter’s is on my 1099A as a covered household member. She did not receive a 1099A.

Perhaps I will repay more than I need to, but I wish to repay the seven months of subsidies I received for her.

The way I thought of doing this was to claim 100% of column A on my return, but  less than 100% of B and C.   On my daughter’s return I would tell her to claim 0% for all three.

• I calculate that during the seven months (Jan - July) she was on the plan, the percentages of A, B and C attributable to her, were all 27%
• I did this by comparing the values in A, B and C for months Aug-Dec when only my wife was on the plan.  (I am on Medicare).

So, I tried the following in Turbo Tax:

- Checked the box “Shared this polcy … someone who’s not on my tax return

- Entered daughter’s SSN and start and end months of Jan and Jul

Then on “What percentages do you wish to claim on your tax return?” I did this:

1. - I put 100% in all columns and noted my total tax liability including all of my tax return, calculated by Turbo Tax.  
2. - I then changed the percentages to 100%, 73% and 73%

I was hoping that this would increase my tax liability by the seven months of my daughter’s advance payments.

*** But instead, my tax liability went DOWN by $800. ****

The % attributable to my daughter over the whole year is 16.7%.   I could try entering 82.3% for B and C, but I am sure it will just produce a smaller drop in my liability.

There are six percentages to play with, three on mine and three on my daughter’s:  How can I set those so that in total we pay back her subsidies?

All help very much appreciated.

Oh - and should I and my daughter add some kind of statement about all of this?  And if so, how does one do that in Turbo Tax?

[nonr]

For those following this saga, furtherdevelopment:

One 1095A with with wife and (non-dependent) child on it. Child only on it for first 7 months.

My wife and my return:

- Noted child''s SSN as not on my return with policy shared for first seven months..

- My wife and I claim 73% of A,B and C for this shared time. (Assume 100% claimed for other, non-shared 5 months)

- On child''s return, enter my SSN as shared policy filer.

- Enter 1095A  columns A, B and C for the first seven months, blanks for last five months.

- Child claims 27% of A,B and C. 

- The 1099A was not issued to the child but her SSN is on it.

- The totals in child's entries do not match totals on 1099A but across both returns with the seven month split and the 73/27% split, 100% of whole year's A,B and C are claimed by the two returns in combination.

- I see this as a clear way of defining what happened - two separate individuals accounting for their own premium costs and credits respectively.

And, it I turns out that given her annual AGI, the child deserves all of the advance premium credits according to TurboTax.

It's the best I can do given that there should have been two separate policies, and two separate 1098As.

Question:  Should the child add an explanatory statement to her return?  (And file by mail)

[IsabellaG]

No, there is no reason that your daughter needs to file by mail or add an explanation to the return at this time. However, as always, you and she should maintain a record of your situation/ calculation in the event that the IRS requests one. 

[nonr]

Thank you so much.  I am very grateful to you, and everyone else here who contributes.