In 2023 my daughter graduated college, got a job with her own health insurance through her employer and became independent. She was on our health insurance through the health insurance marketplace through July until her insurance started. I received a 1095-A for our family. She does not have her own 1095-A. What's the proper way to fix this error for her. We filed her tax return and it was rejected for not having a 1095-A.
She will need to enter your 1095-A on her return since she is not claimed as a dependent on your return.
You will need to select that this policy was shared with another tax family. Assuming you claimed 100% of the allocations, she can claim 0%.
I entered the 1095-A , checked it was shared, and allocated 0% to her. This raised her refund significantly! While I'm sure she wouldn't mind, what does this do to our (the parents) return? We are the ones who paid the premiums and the tax credit is based on our income, etc.
Did you allocate 0% for the premiums and the payments?
It should not have raised her refund if 0% is being allocated to her.
It should not have an effect on your return or her return.
Yes, I entered 0 for "Your Premium Percentage", "Your SLCSP Percentage" and "Your Advanced Payment of PTC Percentage"
It raised her refund by over $5000.
I found the issue, but I need to make sure I am correcting it the right way.
I entered the coverage information for the whole year, but she was only covered for Jan-July so when I allocated 0% to her, it only did 0% for Jan-July and then was giving her 100% for Aug-Dec.
Which solution is correct?
Have the allocation run for the whole year (Jan-Dec) and leave all coverage in even if she wasn't on the plan the whole time?
or
Have the allocation run for the time she was on it (Jan-July) and zero out the coverage for Aug-Dec?
Have the allocation run only for the time she was on it.
so I should not enter the family coverage amounts from August-December? just leave them blank?
Correct. This should still allow the return to be accepted by the IRS. It is an automated program that accepts or rejects returns. You may end up getting a letter regarding something not being accurate, however, it would not be accurate to include the part of the year that she is not on the coverage on the form. If she would have gotten her own form, she would only have numbers up through July. The rest would be blank.