You will need to enter the information from Form 1095-A. You will indicate that the policy is shared with someone who is not on your return. You may enter any allocation percentage you agree upon, even 0% & 100%, as long as the total between all covered taxpayers is not greater than 100%.
If you purchased insurance through the marketplace and received a 1095-A, that must still be reported on your return.This will calculate the Net Premium Tax Credit on Form 8962. This form reconciles the amount of the credit available to you with the amount already received as an Advance Premium Tax Credit. The result could be additional credit owed to you, or you may have to repay any amount already received in advance. Because of either of these results, it is important for taxpayers to include the information from Form 1095-A on their return.
Follow these steps:
I know my SLCSP percentages, but I have three taxpayers on my plan that were on and off for different time periords. How do I allocate the SLCSP percentages within Turbotax for my return, as well as that of two additional tax returns (individuals).
Thank you
If I understand correctly, you have one form 1095-A and want to know what to allocate to the other individuals covered on your insurance who are filing their own tax returns.
I suggest you assign a number of "1" to each covered individual for each month of the year they had coverage. Then add all the numbers together and divide the total by each individual's number total. That will give you a percentage for each, the total of which is 100%.
Use your percentage to enter on your tax return and the other's percentage to enter on their tax return.
If we choose to do a 0 and 100 allocation between myself and my parent, do I still need to input the 1095-A information in? What would be the repercussions of this? Some say to divide 1 (myself) by the total number of people which would give me a 50/50 allocation in my case.
The IRS only requires that both of you agree on the percentage that you are claiming and that the percentages for each field add up to 100%. Since your mother claimed 100%, you will claim zero and the percentages will be correct.
To enter your 1095-A follow these steps:
Form 1095-A is a form that is sent to Americans who obtain health insurance coverage through a Health Insurance Marketplace carrier. The form does not have to be returned to the government but serves as a record of the individual's coverage.
@michellereese2806 What version are you using? In the Desktop Home & Business version you don't have a Federal tab but Personal Income.
In the Online versions Federal is on the left side menu bar. Here's a screen shot. You have to log into your return.
Hello, I am having trouble figuring out the premium percentage and slcsp percentage. Is there a written out mathematical example that could be provided. I am not claimed by my parents but share a marketplace health policy in which the monthly premium, slcsp and monthly premium advance tax credit was the same each month for all 12 months in 2022.
There actually are some examples that would be useful to you. You can find them in the text below Allocation Situation 4 - Other situations where a policy is shared between two tax families in the Instructions for Form 8962.
According to Allocation Situation 4,
… you and the other taxpayer may agree on any allocation of the policy amounts between the two of you. You may use the percentage you agreed on for every month for which this allocation rule applies, or you may agree on different percentages for different months. However, you must use the same allocation percentage for all policy amounts (enrollment premiums, applicable SLCSP premiums, and APTC) in a month. If you cannot agree on an allocation percentage, each taxpayer’s allocation percentage is equal to the number of individuals enrolled by one taxpayer who are included in the tax family of the other taxpayer for the tax year divided by the total number of individuals enrolled in the same policy as the individual(s). The allocation percentage you use and that you put on line 30 of Form 8962 is the percentage of the policy amounts for the coverage that you will use to compute your PTC and reconcile APTC.
Please see the section cited above in the link to review the full text.
I HAVE APOLICY FOR MARKETPLACE MY DAUGHTER IS FILLING HER TAXES NOW BY HERSELF HOW DO I FIGURE HER POSENTAGE SHE WAS ONLY 3 MONTHS IN THE POLICY
You get to do fun math. Look at the three months that she was in the policy and then divide the numbers for those three months by the number of people you had on the policy. She puts her share on her return and you put the remainder on your return.
For example, if you look at January and the numbers in columns A, B and C are $200, $160, and $100 for that month and you had four people on your policy then your daughter's share is one fourth of each column total. So on her return for January she would enter $50, $40 and $25. You would enter the rest on your return - $150, $120 and $75.
The total of both of your entries on the form should add up to what the total on the form is.
She will only need to enter information into the three months that she had coverage. The rest of her months get left blank.
So, I have 6 people on my 1095-A 2 are independent adult children that don't make very much money. If the 2 adult children each take 50% of premium percentage, SLCSP percentage and PTC, and I take 0% we would get the best tax advantage. Is this an acceptable way to handle it?
Yes, if you have two persons on your 1095-A Health Insurance Plan that you are not claiming as your Dependents (and they are filing their own returns), you can Allocate a % of Premiums between you any way you choose, as long as the Allocations add up to 100%.
Here's more info on how to enter amounts in TurboTax when Allocating Form 1095-A.
So My Dad is a "Recipient" and I am in "Covered Individuals." We are filing separately. My question is can my dad set "your premium", "your SLCSP Percentage", and "Your advanced payment of PTC Percentage" to 0%? And I set to 100%? Also, every covered individuals have to add 1095A? because I do not see to add another person in a shared policy option.
Yes, as long as the totals add up to 100%, you can allocate the premiums and SLCSP percentage however is best for you and your dad. And yes, anyone who receives a 1095-A has to enter it on their tax return unless they are a dependent. You don't need to add any names already included on your tax return. You will need to add the name of the person who you are sharing the policy with (Dad) - in that case, you will need to enter the 1095-A recipient information (your dad) in the shared policy follow-up questions.
Hi @DawnC ,
Thank you for the answer. But the thing is I was dependent until November last year because until November I was studying and then I had an offer with the company. I had to remove myself from the marketplace plan from November . And so, I am not claimed as dependent in my parents taxes. I have not received a separate 1095A. Recipient is my dad and I am in Covered Individuals. Should I still set 100% (in SLCSP questions) in my taxes?
Yes, as long as the totals add up to 100%, you can allocate the premiums and SLCSP percentage however is best for you and your dad.
The IRS requires that your percentages are agreed upon by all and that the percentages add up to 100%.
Taxpayer 1's tax return should reference taxpayer 2. Taxpayer 2's tax return should reference taxpayer 1.
You may also review your scenario in this TurboTax Help.
@JamesG1 Thank you for the answer. Also I wanted to know, dependents need to add 1095A in their own return even though they are in "Covered Individuals" and dad is in "Recipient" ? If not we can select No option (in dependent's return) where it says "Do you need to report your health insurance premium?" Just curious to know.
If you file a federal tax return and your social security number is associated with a Marketplace health insurance policy, then the IRS will want to see a Form 1095-A and Form 8962 in your return. If your father claims you as a dependent or not, you will need to enter the information either way.
@TeresaM Thank you for the answer but the post (https://ttlc.intuit.com/turbotax-support/en-us/help-article/taxation/parents-1095-form-return/L2phDGHT3_US_en_US) says you do not need to add 1095A in dependents return if parents are claiming you as a dependent. Which one should we consider? Should we add or not? I am so confused now.
It is simpler not to include Form 1095-A and 8962 in the return, and indeed all of the calculations for the credit will take place on your father's return. That is the one the IRS needs.
However, I am finding that recently if the social security number is associated with a Marketplace account, the IRS is at least some of the time rejecting e-file with an error message for 8962.
Perhaps it would be best to try to file the return without the health forms and see if the IRS will accept it. They do not need the information on your return. However, if they reject the return with the error message for 8962, you can enter the form and use the allotment discussed above with your part at zero percent.