How does my son (non-dependent) deal with healthcare on his taxes when I paid for his coverage through the marketplace (on the plan with my husband and dependent son)?

[amanda-holender]

In 2016, I covered/paid for marketplace healthcare to cover my husband, dependent son, and non-dependent son. I included the 1095-A on my tax return and repaid 100% of the subsidies. My non-dependent son needs to prove healthcare coverage on his own tax return; however, when he indicates that he had a marketplace plan, it asks him for percentages, etc. He didn't pay for any of his healthcare. What do we do?

[Fern]

Your son 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.

You will have to find what the SLCSP is for each person's household and add it up. Then, divide your SLCSP by the total SLCSP to get your percentage of premiums  and advanced payment of the premium tax credit.

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 son.  The allocation can be anywhere from 0% to 100%.  You both must agree to the allocation.

[TaxGuyBill]

If there was Advance credit (column C of the 1095-A), you DON'T look up the SLCSP for each family.  You use what is on the 1095-A, and all three allocation numbers need to be the same.

If his income is over $11,770, it would be best to allocate 100% to the tax return that has the lowest poverty percentage (Line 5 of Form 8962).  Unusually that is the kid.  Otherwise, you probably want to allocate 100% on your tax return and 0% on his.  Just be sure to enter the 1095-A on BOTH tax returns.

If there was NOT Advance credit, then you look up the SLCSP for each family.  The 'link' in TurboTax should help explain how to manually do the math.

[Hanky]

What is the son’s income is less than 10,000 can we allocate 100% for the advance tax premium payment?

[VictoriaD75]

When more than one taxpayer is on a marketplace policy, the 1095-A must be reported on each return. You indicate that the policy is shared by someone who is not on your return. You then allocate any percentage agreed upon by the policyholders, even 0% & 100%, as long as the total percentage allocated between all policyholders is not greater than 100%. 

[Duckduckgoose]

I'm in a similar boat on this. I had paid for my son's health care through the marketplace. I included his 1095-A on my return but neglected to indicate it's a "shared policy" and did not include the 1095-A on his return. My income this year was over the threshold and we had to pay back all the advance credits.  This week my son received a letter from the IRS requesting the 8962 and 1095-A, to complete and process his return. So to fix my oversight I will need to indicate this is a shared policy on both our returns. From reading this it would be our advantage to allocate 100 percent to my son (who had minimal income), which would lower our tax owed, and give him a larger refund. This would require amending our return. Does all of this seem reasonable to you, and if so do I enter 100% in all boxes (Premium Percentage, SLCSP, Advance Payment of PTC) for him, and 0 on ours?  Thank you!