Form 1095A premium tax credit sharing allocation between two tax families

[almk]

How do you share (Form 1095A) healthcare premium tax credit between a parent and a non dependent child  (separate tax families) if at the end of the year the child has income above 400 % FPL and the parent has income between 100 and 200 % FPL? Is any allocation between 0 and 100 % allowed?

[ColeenD3]

Yes, any allocation is allowed, if agreed upon and if it totals 100% between the returns. Your child will need of your 1095-A. He will indicate that he shared this policy with someone who is not on his tax return.  

On your tax return, you will indicate the same information.

In allocating any Advance Credit received, you have the option to claim 100% of the 1095-A on your tax return, or you can allocate part of it to your nondependent.  The allocation can be anywhere from 0% to 100%.  You both must agree to the allocation.

[alsn]

@ColeenD3 Re: "In allocating any Advance Credit received, you have the option to claim 100% of the 1095-A on your tax return, or you can allocate part of it to your nondependent.  The allocation can be anywhere from 0% to 100%.  You both must agree to the allocation."

1. Can you please clarify "You both must agree to the allocation."? Does this need to be in writing? If so, what is the language/format of the agreement? The parent will prepare both returns (parents and non-dependent child) using TurboTax. 

2. Can parents and child agree to allocate 100% on child's return if it is most favorable? If so, do the parents need to file form 8962 or only the child?

[Mike9241]

1. Can you please clarify "You both must agree to the allocation."? Does this need to be in writing? If so, what is the language/format of the agreement? The parent will prepare both returns (parents and non-dependent child) using TurboTax. 

nothing specified. but getting something in writing doesn't hurt. 

2. Can parents and child agree to allocate 100% on child's return if it is most favorable? If so, do the parents need to file form 8962 or only the child?

yes. report on both returns. your SSN is on that 1095A so the IRS is going to be looking for that 8962 in your return.

also per form 8962 instructions 

APTC was paid for you or another individual in your tax family.  this is true even though child is going to be allocated 100%

[alsn]

Thanks.