Shared Policy allocations for a form 1095A linked to a business... are not supported.

[MGJGAA]

Wow, I have searched and chatted with 3 TT experts, no one has any answer.  They all tell me the basics, how to share 1095A allocations, thats all straight foward.  All of this in the IRS instructions and examples.  But TurboTax Self Employed Live also has an "Issue" in the final review with sharing allocations when you are self employed. 

• Form 1095-A - Insurance Exchange (xxx) Social Security Number policy allocations for a form 1095A linked to a business, Business Related Premiums Smart Worksheet below, are not supported.    Has anyone in this situation went ahead and filed anyway?

[MarilynG1]

Some taxpayers have discussed a workaround for your situation.  If you want to keep the Self Employed Health Insurance Deduction, and you share a Marketplace plan with a non-dependent, you can theoretically allocate 100% of the premium to yourself and not indicate in TurboTax that you shared a policy.

How this will affect your non-dependent's return (if they received their own 1095-A or not) will need to be tested.  If you don't want to claim the Self Employed Health Insurance Deduction, don't indicate you were self-employed when entering your 1095-A and split the allocation with your non-dependent.  

Here's more discussion on Shared Marketplace Plan if Self-Employed.

[jasling]

Is there any update on this situation? It seems like this TT limitation has been present and known for years and still hasn't been fixed. I shared my ACA Healthcare plan with a daughter who got a job half way through the year so she left my health plan and won't be claimed as a dependent. Therefore she and I both need to enter allocations on our tax forms from my 1095-A. I paid all the premiums so I enter 100% and she enters 0%. It's not really all that complicated or different than if she was just on my plan all year and could be claimed as a dependent. So why should that preclude me from taking the self-employed deduction for healthcare premiums? Not taking the deduction will cost me thousands.  It's actually not that complicated and I can't believe this has been going on for years with no fix from TT. 

I paid the price for the software and expect it to work so I can file my taxes. I actually paid extra and upgraded from Premium to Home and Business hoping that would fix this issue but that didn't work either. As a paying customer, can I get some help with an actual solution?  And no, having me pay more money to work with an accountant isn't an acceptable situation for a known issue in TT that has been present for years.

I've been a customer for 20 years and have always dealt with the minor inconveniences that TT causes every year without much complaint. But on this situation I have to ask that you do better.

[mronufrak]

I am having the same problem.  If I uncheck the box for being self-employed and buying health insurance from the marketplace, my tax liability goes up about $5K!   If I check the box, I have 6 errors that TT is asking me to resolve, all saying my SS#, my % allocations, etc. are "not supported".  The TT rep said I should buy TT online or talk to a tax professional....really?  Why did I pay for this?

[jasling]

Yes, sounds like exactly the same problem. I'm sure there are many others who are experiencing the same thing, and this has clearly been going on for years. I challenge someone from Intuit/TT to post here explaining why they can't resolve this problem for us. What are the steps we need to take that will lead to an actual solution? I think asking us for more money is absurd given the situation, and I'm also doubtful their vague suggestions of "buy this" will even lead to a resolution. Let's have some accountability!!  You sell a product. It doesn't work properly for your paying customers. Fix it!!

[allensuz]

Has anyone come up at a solution for this issue?  My oldest son is not a dependent and files his own return, but we kept him on our marketplace plan for 2023.  I'm ready to get stuff filed but can't get past the error code.  If this has been a known issue, you'd think TT would have resolved it by now.  I can't even seem to override the "error!"  VERY FRUSTRATING!!!!!!!

[one farmer]

Same problem, those 6 errors prevent me to e-file ! I'm going to print it out and file by mail!

[mronufrak]

I had the same problem and got the same lame response from TurboTax.  I ended up taking the advice in another post to simply uncheck the box that says your insurance was split with someone else.  The taxes stayed the same, the errors went away, and it went through.

[k9998]

Hi @mronufrak.

I'm in the exact same situation, and was wondering if submitting the way you did resulted in an IRS response for more information/issue?   or you had no follow-up from IRS with your submission?

Thank You!!  Would love to know before i file my 2024 taxes  🙂

[k9998]

Hi @MarilynG1

I am in the exact situation you described, and was wondering if I apply the "workaround" you mentioned, whether that would result in an IRS query/issue after successfully e-filing?

My situation is I have my daughter under our ACA plan, but she is NOT our tax dependent, and files her own taxes.   We pay 100% of the healthcare plan and for her tax filing this year, she had to file with our 1095-A information with 0% allocation to her.    On our side, i was wondering if I could use the "workaround" and Not state in turbotax that we our plan is shared with someone else not on our tax return.  I am concerned that the IRS will flag that as a issue with our filing (or send a follow-up after we file this way).

If you have any insight that would be greatly appreciated.  Thank You!!

[dommett01]

Adding my call for action to everyone else. Same exact scenarios as the others here have stated. Hoping for a fix soon.

[MarilynG1]

If you enter your 1095-A as issued, and indicate that you shared the policy with someone NOT on your return, then enter your Allocation %, which can be anywhere between 0-100%. If you allocate 100% to yourself, this should essentially be the same as not indicating you shared a policy. As long as the 1095-A entry in TurboTax matches the form (the allocation is not on the form), there should be no reason for the IRS to contact you (no guarantees, however!). 

If you indicate you were Self Employed, the amount of the SE Health Insurance Deduction will be calculated for you, based on SE Income.  However, since this calculation is not supported by TurboTax, you may want to test how this works on your return.  Since the SE Health Insurance Deduction is added back in for calculating the Premium Tax Credit on Form 8962, this may increase or decrease your refund.

"When both the self-employed health insurance deduction and the premium tax credit are involved in a return there are situations where the circular calculation that this involves does not converge to amount that is within $1. See IRS publication 974, the Self-Employed Health Insurance Deduction and Premium Tax Credit section for more details. When this is the case the tax return can alternate between two significantly different states. This commonly occurs where the self-employed health insurance deduction causes the federal poverty level to be under 400% but then the Premium Tax Credit provided reduces the self-employed health insurance deduction, then the federal poverty level goes over 400% and no Premium Tax Credit is available. In this case you should refer to IRS publication 974, the 13 Self-Employed Health Insurance Deduction and Premium Tax Credit section for the calculation requirements."

Here's more info on How is the Premium Tax Credit Calculated.

@dommett01