Question regarding form 8962

[al476]

Unmarried couple with 2 children. For tax purposes, she claims one child I claim the other. I claim Head of household status. Listed both kids but 1 is classified as not a dependent.

For insurance purposes, policy is purchased through the state program. I enrolled both kids and myself and she enrolled herself. 1095A received for me lists the 3 of us. Her 1095A lists just her. So when filling tax return on form 8962 do I list the 3, myself and kids? Do I need to fill out part 4 and allocate 100% to myself and list her SS number? Does she also have to fill out part 4?

[ReneeM7122]

Yes, since you filed Head of Household, you are considered two separate tax families. For the purpose of the PTC, you will keep it separate and do not include the whole family on form 8962.

The PTC is a tax credit for certain people who enroll, or whose family member enrolls, in a qualified health plan. The credit provides financial assistance to pay the premiums for the qualified health plan offered through a Marketplace by reducing the amount of tax you owe, giving you a refund, or increasing your refund amount. You must file Form 8962 to compute and take the PTC on your tax return.

Here is a link to the instructions for Form 8962.

[al476]

Thank you for the reply. Still have a question regarding filling out the form 8962.

So when filling tax return on form 8962 do I list the 3, myself and 2 kids? Do I need to fill out part 4 and allocate 100% to myself and list her SS number?

She will also fill out 8962 for just her. Does she also have to fill out part 4? Does she have to do form 8962 listing the child and allocating 0% even though the child is not on her 1095A form?

[MarilynG1]

@al476 Yes, the other parent needs to enter your 1095-A in her return (as well as her own) and indicate 'allocated with someone not on my return' and claim 0%. Otherwise, she may receive a letter from the IRS asking for 8962 since your child (that she claimed) is on a Form 1095-A. 

On your return, after entering your 1095-A, on the screen immediately after entering it, check the box that the policy was shared with somebody that is not on your tax return and allocate 100% to you. It is usually best to allocate 100% to one tax return. 

However, if you decided to split the allocations (66% to you, 34% to her, for example) for the child she is claiming, she would indicate this after entering your 1095-A in her return. 

Click this link for more info on  Allocating Marketplace Premiums to Someone Not on Your Return. 

[al476]

Thank you. Just to be sure I am totally understanding this, both returns will have two 1095A info entered and 2 8962 forms filled out to go with each of the returns. Is that correct?

[DaveF1006]

Yes, that is correct. Both returns will have two 1095A information and 2 8962 that will reflect your shared cost on the policy.

[al476]

Thanks to everyone who responded to my question. I really appreciate the information.

[al476]

How do I enter a second 1095A and 8962 in the IRS free version on line? Also how do I make corrections to 8962? the one the program generates pulls in 2 people even though the 1095A was entered with just 1 person.