Review says "Shared Policy xxxx allocations for a form 1095A linked to a business... are not supported." What do they mean by "not supported" ?

[Daddude]

After doing my own research (no thanks to TT), I believe my scenario is outlined under the Instructions for For 8962 on page 18 under "Allocation Situation 4. Other situations where a policy is shared between two tax families" where the IRS says "Under the rules in this section, you and the other taxpayer may agree on any allocation of the policy amounts between the two of you. You may use the percentage you agreed on for every month for which this allocation rule applies, or you may agree on different percentages for different months. However, you must use the same allocation percentage for all policy amounts (enrollment premiums, applicable SLCSP premiums, and APTC) in a month."

I'm no CPA, but this seems like pretty straightforward direction that would be helpful for TT to at least have referenced somewhere. Since my adult daughter has enough earnings to make her "not a dependent" but not enough to support herself or pay any of the premiums, she is happy to have me claim 100%. Would have saved me several hours.

[Daddude]

One final addition. Like the poster above says, even if you are allocating APTC 100% to yourself, TT throws up its hands and says it's too complicated, I can't handle it. So if you're allocating 100% to yourself, just tell TT you didn't share it with another taxpayer. Treat TT like a child and protect it from the reality it is not ready to handle...

[jasling]

Amen, daddude. Amen! I ran into this in the current year for the first time and I can't believe it's been a know issue to TT this long and still isn't fixed. My opinion of Intuit is going down fast!

[Anonymous]

Agreed!  Can't believe this issue has not been resolved!!!  So annoyed after using TT for years to have this come up.

[LenaH]

Shared policy allocations of a Form 1095-A linked to self-employment income is not supported by TurboTax for the 2023 tax year as per the FAQ - Unsupported Calculations and Situations in the 2023 TurboTax Individual Federal Tax Software Program...

@Anonymous 

[Daddude]

Yes. We've all figured out TT does not support it, but you missed the point.

Even if you are allocating APTC 100% to yourself, TT throws up its hands and says it's too complicated.

We all believe that this calculation is NOT too complicated (since at 100% and 0%, effectively there is no sharing). We think this scenario, where it is shared with a young adult that is effectively a dependent (even if filing taxes separately) is not as rare as TT seems to believe and should be supported by TT. 

[k9998]

Hi @Daddude 

I'm in the exact situation you described in your post.  I am planning to go the route you mentioned, and "tell TT you didn't share it with another taxpayer".  My daughter when she filed her taxes this year had to use our 1095-A info and allocate 0% to herself in order for her e-filing to go through.

Does filing our taxes this way "tell TT you didn't share it with another taxpayer" result in an IRS query/issue post-filing?   Would like to avoid any issue with an IRS follow-up 🙂

Thank You!

[Daddude]

Hi k9998,

I'm not a tax expert, CPA nor have any financial designations, so am not qualified or able to advise you on your specific situation.

That said, my experience was that I found that specific example documented in the IRS documentation. It says you and the other person can agree on ANY allocation, including all to one and nothing to the other. 

In my case, I used that example to allocate 0% to my daughter and 100% to my wife. The trick with TT is that even though you are "sharing" the 1095-A, TT needs to be told that you are NOT sharing your 1095-A (since it was allocated 100% to me). Otherwise, TT says you have to file it yourself on paper. 

It's been a while, but believe that even though I told TT I didn't share, I went to forms and filled out the sharing info with 100% to me. My daughter did the same claiming 0%. So I believe the IRS got what it needed. In our case, we were never questioned about it by the IRS. Hope this helps. 

[k9998]

@Daddude 

Thank you very much for sharing your experience.   It is VERY helpful!!   I think i'll do the same as what you did, makes total sense.   I tried manually over-writing the Form 1095-A with the sharing allocation information (despite telling Turbotax in the Step-by-Step that i am not sharing with anyone else), and it allowed me to save, although it continued to show the 6 errors (i am just going to manually file with the 6 errors since e-filing with erros isn't allowed).  I too believe this will provide the IRS what they need (resulting in Form 8962 filled out with the allocation information -100% to myself, 0% for my daughter's tax return).   

Appreciate your quick and very helpful response!

[k9998]

Hi @Daddude ,

Just a quick follow up to your response.   Did you eventually manage to e-file (you mentioned you went into the forms to do the 100% allocation to yourself)?    Or did you have to manually file because you needed the form 8962 (Premium Tax Credit) to show that you were allocating 100% to yourself?

Thank you!

[MarilynG1]

No, you can enter the allocation % of the 1095-A premium in the interview for that section, you don't need the Forms. 

After the screen where you indicate that you shared the policy with another person not on your return, you can enter your % of the Allocation. 

Here's more info on Allocating 1095-A.

@k9998 

[just-ask]

So, I too was running into the same error.  Not wanting to have to print and mail, I went back and unchecked the box that linked it to my business.  I lost out on the self employment healthcare credit, but it allowed me to efile.  Cost me a couple hundred dollars but my time is more important and again didn't want to spend time chasing down a fix.  If this was an issue last year, why hasn't TT found the fix?

[MarilynG1]

Yes, the 'sharing' of a Marketplace 1095-A and a deduction for self-employed health insurance are unsupported calculations in TurboTax (item 6 under Health). 

Your options are to either mail your return, or to do as you did, and opt to forego the self-employed deduction.

Obviously, you could not report the 'sharing' but this could impact either/or/both your return and the other person's return. 

@just-ask