If your parents told the Healthcare Marketplace (usually when they applied for health insurance) that you were not going to be their dependent, you will probably receive a 1095-A of your own, and you will need to enter that into TurboTax.
If your parents did NOT tell the Healthcare Marketplace (usually when they applied for health insurance) that you were not going to be their dependent, you will NOT receive a 1095-A of your own.
You will need to get a copy of your parents' 1095-A and enter it on your tax return. On the screen after entering the 1095-A, you will check the box indicating that the policy was shared by somebody that is not on your tax return. It will then prompt you with further questions to determine how much of it is "allocated" to you (even if it is 0%). Your parents would follow this same procedure.
If there was Advance credit received (column C of the 1095-A),
your parents have the option to claim 100% of the 1095-A on their tax
return, or to "allocate" part (or all) of it to you. If you both agree,
the allocation can be anywhere from 0% to 100%. If you can not agree and Advance credit was received (column C on the 1095-A), then it is divided by the number of people on the insurance policy. For example, if the insurance policy covers 4 people, each person is allocated 25%.
EDIT: This Tax Tip might not be valid if your (the child) income is below 100% of the Poverty Level ($11,670 for a Single person in 2015 in the Continental US). TurboTax will calculate it as valid, but the legal gibberish indicates it may be questionable in those cases. Eventually, the IRS will probably give further clarification.
Tax tip: Assuming you are in a lower "poverty level" than your parents (lower income per household size, see Line 5 of Form 8962), it is usually more beneficial for ALL of the 1095-A to be "allocated" to YOU.
If your parents are agreeable to it, it would be good to do your tax return side-by-side with your parents return, to see how allocating things affect your tax return. In most cases, the best overall outcome will be if 100% is allocated to the tax return with the lowest poverty percentage (see Line 5 of Form 8962).
If you do that, I would highly recommend using the CD/downloaded version of TurboTax, rather than the Online version.
If there was NO Advance credit received (column C of the 1095-A), it's a bit more complicated.
- You look up the SLCSP that applies to you and enter it in column B of the 1095-A (ignore what is actually on the 1095-A): https://www.healthcare.gov/tax-tool/
- When you check the box to indicate the policy was shared with somebody that is not on your tax return, for "Your SLCSP Percentage" and "Your Advance payment of PTC Percentage", leave them BLANK.
- For "Your Premium Percentage", see "Allocation Situation #3" in the instructions for what to enter for the percentage. https://www.irs.gov/pub/irs-pdf/i8962.pdf#page=16
Gary and his 25-year-old nondependent son, Jim, enroll
in a qualified health plan. Jim has no dependents. The policy covers
Gary, Jim, and Gary’s two young daughters who are
Gary’s dependents. No APTC is paid for this policy. The Form 1095-A
by the Marketplace to Gary shows an enrollment premium
of $15,000 for the year and the SLCSP premium that applies to a
family that incorrectly includes Gary, Gary's
daughters, and Jim. (Some states may report -0- or leave column B blank
Form 1095-A when no APTC is paid.) Gary and Jim
determine that the SLCSP premium that applies to Gary and his two
is $12,000 and the SLCSP premium that applies to Jim
is $6,000. Gary and Jim are applicable taxpayers and each can take the
Gary computes his credit using his household income
and family size of three, and the applicable SLCSP premium for a
family of three of $12,000. Jim computes his credit
using his household income and family size of one, and the applicable
SLCSP premium for a coverage family of one of $6,000.
Gary and Jim must allocate the enrollment premiums of
$15,000 reported on the Form 1095-A, Part III, column A, in proportion
to each taxpayer's applicable SLCSP premium as
follows. Gary’s allocated enrollment premiums are $10,000 ($15,000 x
(67% of the total premiums of $15,000) and Jim’s
allocated enrollment premiums are $5,000 ($15,000 x $6,000/$18,000) (33%
of the total premiums of $15,000).
Gary enters Jim’s social security number on line 30, column (b), and enters “0.67” in column (e). Jim enters Gary’s social security number on line 30, column (b), and enters “0.33” in column (e). Gary and Jim leave line 30, columns (f) and (g), blank.