Determining SLCSP allocation on 1095-A form for child who graduated and was removed from plan end of May

[chelms]

My oldest was on my healthcare plan at the beginning of 2024.  After graduation, his job provided his healthcare so I removed him from my marketplace plan after May, leaving only myself and my younger son on the plan.  How do I determine the SLCSP allocation for my older son who I removed?  Can it just be 1/3 for columns A-C for the months of January through May?  This then has to be added to his tax return since I am not claiming him as a dependent this year?

[MaryK4]

Yes, you can allocate the policy as you indicated and he will have to add this information to his return since you are not claiming him as a dependent.  Note: the IRS does not REQUIRE a pro-rata allocation, so if you want or are able to allocate 100% to yourself, there may be tax advantages (but this does require math).  

[chelms]

Thank you.  Not sure I understand your comments in your Note.... If I can allocate 100% to me, what math is needed?  Would I not just leave the same values that is on the 1095-A form.  Afterall, while he was finishing his senior semester, he was my dependent but started working in June after graduation.

[MaryK4]

If you allocate 100% to yourself, you may be responsible for paying back some of the Advanced Premium Tax Credit (APTC) because you are not claiming him as a dependent but it is dependent on your income.  If he claims the 30%, depending on his income, he may have to payback ATPC.  You have to compute the differences to see what the best advantage would be overall. @chelms 

[chelms]

Need additional help with this one... So I filed my return allocating 100% .  I forgot to include the 1095-A info on my older son's return so his got rejected.  Do I need to fill in all months on his return even though he was only covered January - May?  Or do I just enter the January-May months and allocate 0% on his return.  It works out better to actually allocate 100% on mine.  Thanks for any help!

[Vanessa A]

You will need to fill in the information exactly as it appears on the form. So if your form has numbers in all the months, you would fill in all the months on his return.