My fiancee and I have 2 biological children together. We file separately. We got a marketplace insurance policy for our new baby last year (the baby was the only one on the policy), using our combined income. (We aggregated our income when we told the insurance agent our household income since he did not realize we were not married. ) We were not eligible for tax credits.
With stimulus we decided my fiancee would claim the baby for 2020 and she received a stimulus check. When we received the 1095A, we realized I had been listed as Head of Household. But my wife is claiming the baby as her dependent.
(1) Can we simply use the 1095A with my name on it as part of her return?
(2) My fiancee has a much lower income than I do. Will she be eligible for a retroactive tax credit if we paid full price monthly enrollment premiums and no advance tax credits?
(3) Does it matter who paid the premiums? I pay them on behalf of my wife for our baby, so it is a fine line on who is paying them.
(4) If I were to claim the payment of the premiums on my taxes, would that impact the answer to (2) above?
(5) If I were to NOT claim the payment of the premiums on my taxes, would I even have to attach the 1095A to my taxes if my fiancee can use it as part of her taxes per question (1) above?
Yes, you can use the 1095A Can we simply use the 1095A with my name on it as part of her return? Shared allocation is allowable.
Please see Allocation Situation 4 in the IRS instructions for Form 8962.
It doesn't matter who paid the premiums. Your fiancée won't be eligible for a retroactive tax credit if you paid full price monthly enrollment premiums and no advance tax credits. You could amend her tax return for 2019 to see what kind of credit might be applied. If you were to claim the payment of the premiums on your taxes, it will not impact the answer above unless you both amend your taxes, and even then, it may not be worthwhile. You would have to print your return and see what the difference is, but if you don't claim the payment of premium on your taxes, then you do not have to attach the 1095 to your return at all.
Thank you @ReneeM7122
If my baby is not my dependent, and I note on my taxes that none of my dependents bought insurance in the marketplace, how can I allocate? The examples in teh IRS document are each splitting dependents.
You would need to enter the 1095-A on your return to allocate it. After you enter the 1095-A, the next screen will ask if any of the following scenarios apply. Mark the box for ''I shared this policy with another taxpayer who is not on my taxes''.
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