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?
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).
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.
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
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!