I have a dependent(mother in law) on my tax return who have markit place insurance and got 1095-A form. Am I responsible for her advance premium credit to pay off?

[Carl]

The owner of the SSN in box 5 of the 1095-A is the one who is legally liable for paying back any overpayment of the PTC.

[akifnoor]

Thanks fro your replay. My Return is already accepted by IRS and today I received a letter to send the copy of 1095-A and 8692 form. When I uploaded the 1095-A  and generated from turbo tax it showed me I own ~14K back to IRS. My mother in law have no income. How to resolve this?  

[Carl]

How to resolve? Pay back the $14K to the IRS. Now that letter you got has a phone number in it you can call for questions/additional information if needed. So if necessary you can call to see about setting up a payment plan with the IRS. But your words of "pay back" tends to lead me to think you got a refund of $14K or more. Hopefully it's not spent yet, and you can just send back $14K to the IRS.
Also, read that letter. I doubt it asked you to "upload" anything. You either have to mail the 1095-A and 8962, or fax it to them. It's important to follow the instructions in that letter to *absolute* *perfection*, or you risk finding yourself in a never ending nightmare with the IRS from which you will never awaken.

[akifnoor]

I uploaded the 1095-A form in turbo tax to generate the 8962 form. I followed the instructions on this link <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/4348755-the-irs-is-requesting-form-8962-for-2018">https://ttlc.int...>
This 14K is the advanced payment of PTC of my dependent which showed as I own to IRS in turbo tax.  My Tax refund was around 2k only. If I am not responsible for the PTC of my dependent why it showed  I own this?
The IRS just asked me to send the copy of 1095-A and the form 8962. The other option is to file amendment  to remove the dependent from my tax return.

[TaxGuyBill]

Yes, if you claim her as a dependent, the 1095-A goes on your tax return and the credit is based on your income.

As you said, it would be better for you to not claim her as a dependent.  However, she will be required to file a tax return with the 1095-A.

[akifnoor]

Thanks Bill. I will go ahead and amend  the tax return to not claim her as dependent.

[Carl]

Get it done "before" the expiration date specified in that letter. Remember, an amended return can not be e-filed. The IRS says so. You have to print, sign and mail it to the IRS.
Additionally, if you filed a state return, then removing her as a dependent from the federal return will mean you need to do the same for the state return.
Next, even if your mother has no income she will have to file a return to show the 1095-A she is covered on, to the IRS.

[akifnoor]

Thanks Carl.

[Anonymous · Accepted solution]

Who Must File

You must file Form 8962 with your income tax return (Form 1040

or Form 1040NR) if any of the following apply to you.

• APTC was paid for you or another individual in your tax family.

• APTC was paid for an individual you told the Marketplace

would be in your tax family and neither you nor anyone else

included that individual in a tax family.

Tax family. For purposes of the PTC, your tax family consists of

the following individuals.

• You, if you file a tax return for the year and you can’t be

claimed as a dependent on someone else’s 2018 tax return.

• Your dependents whom you claim on your 2018 tax return. 

Note. Listing your dependents by name and SSN or individual

taxpayer identification number (ITIN) on your tax return is the

same as claiming them as a dependent.

did you tell the Marketplace she would be in your tax family?  (if you did your SSN would be on line 5 of 1095-A)

if its her SSN, then you can drop her as a dependent  However, if you used Head of Housed filing status and she was your only dependent, you can no longer claim that status.  Also your MIL would have to file her own return  

[akifnoor]

Its her SSN on line 5 of 1095-A. I will go ahead and amend  the tax return to not claim her as dependent.

[SMU41]

I would try to file an amended return taking her off as a dependent. You don't have to claim her. She can file her own taxes and add the 1095A